TORONTO, April 8, 2013 /CNW/ - EGI Financial Holdings Inc. ("EGI") (TSX: EFH) announced today acceptance by the Toronto Stock Exchange ("TSX") of EGI's notice of intention to make a normal course issuer bid. Pursuant to the bid, EGI proposes to purchase through the facilities of TSX and alternative trading systems, from time to time over the next 12 months, if considered advisable, up to an aggregate of 665,559 common shares of EGI, representing approximately 10% of its public float, being 6,655,595 common shares as of April 1, 2013. As of April 1, 2013, EGI had 11,893,432 issued and outstanding common shares. In the prior six month period the Average Daily Trading Volume of EGI shares was 5,691 shares. Purchases may commence through the TSX on April 10, 2013 and will conclude on the earlier of the date on which purchases under the bid have been completed and April 9, 2014. Other than block purchase exceptions, due to TSX NCIB volume restrictions daily purchases will be limited to a daily maximum of 1,422 common shares. The previous EGI normal course issuer bid (for the period April 3, 2012 to April 2, 2013) resulted in 185,600 shares repurchased at an average weighted price of $9.26 per share, for a total of approximately $1.72 million. EGI believes that the proposed purchases are in the best interests of the Company and are a desirable use of corporate funds.
All common shares purchased by EGI pursuant to the bid will be cancelled. The program does not require EGI to repurchase a minimum number of shares, and it may be modified, suspended or terminated at any time without prior notice. EGI has entered into an automatic share repurchase plan with its designated broker in connection with the bid. The plan will allow the broker to continue to make repurchases under the bid during EGI's customary blackout periods.
About EGI Financial
Founded in 1997, EGI Financial operates in the property and casualty insurance industry in Canada, the United States and Europe, primarily focusing on non-standard automobile insurance and other niche and specialty general insurance products.
This news release contains forward-looking information based on current expectations. This information includes, but is not limited to, statements about the normal course issuer bid, and EGI's intentions for the bid.
This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a projection as reflected in the forward-looking information. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific. A variety of material factors, many of which are beyond EGI Financial's control, affect the operations, performance and results of EGI Financial and its business, and could cause actual results to differ materially from the expectations expressed in any of this forward-looking information.
EGI Financial does not undertake to update any forward-looking information, except as required by law. Additional information about the risks and uncertainties about EGI Financial's business is provided in its disclosure materials, including its annual information form, filed with the securities regulatory authorities in Canada, available at www.sedar.com.
SOURCE: EGI Financial Holdings Inc.
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Investor Relations Manager
EGI Financial Holdings Inc.