TSX Symbol: CIX
TORONTO, June 13, 2017 /CNW/ - CI Financial Corp. ("CI") 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 12,500,000 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. Common shares may be purchased by CI or purchased by a trustee to satisfy obligations under equity-based compensation plans for CI. All common shares purchased by CI (but not those purchased by such a trustee) will be cancelled. The 12,500,000 common shares represent 4.98% of the total public float for CI. As of June 12 2017, there are 260,740,656 issued and outstanding common shares of CI.
It is expected that the purchases under the normal course issuer bid may commence on June 18, 2017 and will terminate on June 17, 2018, 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 112,903 common shares daily, being twenty-five percent of the average daily trading volume of the common shares for the six months ended as of May 31, 2017 (451,614).
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.
Under its current normal course issuer bid, CI purchased 11,600,050 of its common shares at a weighted average price of $26.42 per common share between June 18, 2016 and June 12, 2017.
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