TSX Symbol: CIX
TORONTO, June 14, 2016 /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 10,000,000 of its common shares by way of a normal course issuer bid through the facilities of The Toronto Stock Exchange and alternative Canadian trading systems. All shares purchased under the normal course issue bid will be cancelled. The 10,000,000 common shares represent 3.86% of the total public float for CI. As of June 13, 2016, there are 272,476,117 issued and outstanding common shares of CI.
It is expected that the purchases under the normal course issuer bid may commence on June 18, 2016 and will terminate on June 17, 2017, 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 129,061 common shares daily, being twenty-five percent of the average daily trading volume of the common shares for the prior six months (516,244).
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 financial performance and prospects and accordingly the directors are of the opinion that the purchase of common shares is an appropriate use of funds in order to increase shareholder value.
In the last 12 months under its previous normal course issuer bid, CI purchased 8,209,990 of its common shares at a weighted average price of $29.66 per common share.
CI Financial Corp. (TSX: CIX) is an independent, Canadian-owned wealth management company. CI offers a broad range of investment products and services, including an industry-leading selection of investment funds. CI is on the Web at www.ci.com/cix.
SOURCE CI Financial Corp.
For further information: Douglas J. Jamieson, Executive Vice-President and Chief Financial Officer, CI Financial Corp., (416) 364-1145