TORONTO, Dec. 23, 2016 /CNW/ - Home Capital Group Inc. (TSX: HCG) announced today that it has filed with the Toronto Stock Exchange ("TSX") a Notice of Intention to make a Normal Course Issuer Bid, as approved by Home Capital's Board of Directors, pursuant to which Home Capital may purchase for cancellation up to 5,336,040 of its Common Shares, representing approximately 10% of its public float as of December 19, 2016 (being 5,920,340 Common Shares, calculated in accordance with TSX rules) less the number of Common Shares repurchased under Home Capital's normal course issuer bid which commenced September 16, 2016. The average daily trading volume of Home Capital's Common Shares from June 1, 2016 to November 30, 2016 was 247,806 Common Shares. Daily purchases will be limited to 61,951 Common Shares, other than block purchase exceptions. As of December 19, 2016, Home Capital had 64,503,669 Common Shares issued and outstanding. The purchases may commence on January 1, 2017, and will terminate on December 31, 2017, or on such earlier date as Home Capital may complete its purchases pursuant to the Notice of Intention. The purchases made by Home Capital will be effected through the facilities of TSX and in accordance with the rules of TSX. The price that Home Capital will pay for any Common Shares will be the market price of such shares at the time of acquisition. Home Capital will make no purchases of Common Shares other than open-market purchases.
The TSX has approved the early termination of Home Capital's normal course issuer bid which commenced September 16, 2016. Under that bid, Home Capital acquired 584,300 Common Shares. In the twelve month period ended December 12, 2016, Home Capital acquired 1,695,300 Common Shares under normal course issuer bids at a weighted average price of $29.10 per share. The timeframe of Home Capital's new normal course issuer bid aligns with Home Capital's fiscal year.
Home Capital believes that, from time to time, the market price of its Common Shares does not fully reflect the value of its business and its future business prospects. As a result, Home Capital believes that the purchase of its outstanding Common Shares may represent an appropriate and desirable use of its available funds.
Home Capital has entered into an automatic purchase plan with a broker. From time to time, when Home Capital does not possess material non-public information about itself or its securities, it may direct its broker to allow for the purchase of Common Shares at times when Home Capital ordinarily would not be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise. Any such plans entered into with Home Capital's broker will be adopted in accordance with applicable Canadian securities laws.
Home Capital Group Inc. is a public company, traded on the Toronto Stock Exchange (HCG), operating through its principal subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering residential and non-residential mortgage lending, securitization of insured residential first mortgage products, consumer lending and credit card services. In addition, Home Trust offers deposits via brokers and financial planners, and through its direct to consumer deposit brand, Oaken Financial. Home Trust also conducts business through its wholly owned subsidiary, Home Bank. Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, British Columbia, Nova Scotia, Quebec and Manitoba.
SOURCE Home Capital Group Inc.
For further information: Laura Lepore, Assistant Vice President, Investor Relations, 416-933-5652, [email protected]