TSX Symbol: CIX
TORONTO, May 26 /CNW/ - CI Financial Corp. announced today that The Toronto Stock Exchange has accepted its Notice of Intention to Make a Normal Course Issuer Bid.
CI intends to purchase up to 15,558,418 of its common shares by way of a normal course issuer bid through the facilities of The Toronto Stock Exchange. All shares purchased under the normal course issue bid will be cancelled unless they are needed for re-issuance pursuant to CI's equity compensation plans. The 15,558,418 common shares represent approximately 10% of the public float. As of May 17, 2010, there are 290,005,886 issued and outstanding common shares of CI.
It is expected that the purchases under the normal course issuer bid may commence on May 29, 2010 and will terminate on May 28, 2011, or on such earlier date as CI completes its purchases or provides notice of termination. Purchases will be effected through the facilities of The Toronto Stock Exchange at prevailing market prices, or such other means as may be permitted by The Toronto Stock Exchange. CI is permitted to purchase up to twenty-five percent of the average daily trading volume (269,005) of the common shares for the six months prior to the date hereof being approximately 67,251 common shares.
CI believes that the market price of the common shares may, at certain times throughout the duration of the normal course issuer bid, be undervalued based on CI's future earnings and prospects and accordingly the directors are of the opinion that the purchase of common shares is an appropriate use of funds to increase shareholder value.
In the last 12 months under its previous normal course issuer bid, CI purchased 3,634,303 of its common shares at a weighted average price of $20.51 per common share, of which 3,517,803 common shares were purchased for cancellation, and the remaining 116,500 common shares were purchased for re-issuance pursuant to CI's equity compensation plans.
CI Financial Corp. (TSX: CIX) is an independent, Canadian-owned wealth management company with approximately $90.8 billion in fee-earning assets at April 30, 2010. CI offers a broad range of investment products and services, including an industry-leading selection of investment funds, and is on the Web at www.ci.com/cix.
SOURCE CI Financial Corp.
For further information: For further information: Stephen A. MacPhail, President, Tel.: (416) 364-1145