TORONTO, Jan. 15, 2016 /CNW/ - Sirius XM Canada Holdings Inc. ("SiriusXM Canada" or the "Company") (TSX: XSR), parent of Sirius XM Canada Inc., announced today that it intends to implement, subject to approval of the Toronto Stock Exchange (the "TSX"), a normal course issuer bid ("NCIB") for its publically traded Class A Subordinate Voting Shares (the "Class A Shares") as appropriate opportunities arise from time to time. The Company has filed a notice with the TSX requesting approval of the NCIB. The NCIB is expected to commence as soon as practicable following receipt of TSX approval. The Company will execute its NCIB in accordance with the policies of the TSX.
The NCIB would allow the Company to purchase its Class A Shares over a 12 month period, subject to the Company's blackout periods. In the future, the Company may rely on an automatic purchase plan during the NCIB. The automatic purchase plan would allow for purchases by the Company of Class A Shares during certain pre-determined blackout periods, subject to certain parameters and approval of the TSX. Although SiriusXM Canada intends to purchase its Class A Shares under its NCIB, there can be no assurances that any such purchases will be completed. Any Class A Shares purchased by SiriusXM Canada pursuant to the NCIB will be cancelled.
Pursuant to the notice and subject to the market price of its Class A Shares and other considerations, the NCIB would allow SiriusXM Canada to acquire, over a 12 month period, up to 5,236,558 Class A Shares, representing approximately 5% of its issued and outstanding Class A Shares as at January 14, 2016. Daily purchases will be limited to approximately 26,000 Class A Shares representing 25% of such average daily trading volume, other than pursuant to the block purchase exemption. There are 104,731,168 Class A Shares outstanding as at January 14, 2016. Within the past 12 months, SiriusXM Canada has not purchased any of its Class A Shares.
"Our Board of Directors believe the current price of the Company's common shares does not properly reflect the underlying strength, operational track record and growth potential of the business," said Mark Redmond, President and CEO, SiriusXM Canada. "We are a strong established brand in the Canadian audio entertainment industry with a subscriber base in excess of 2.7 million inclusive of more than 1.9 million self-paying subscribers which grew by approximately 14,000 in the quarter as we continue to drive net self-pay annual subscriber growth. Commencing an NCIB, in combination with our quarterly dividend, demonstrates our confidence in the strong cash generation capabilities of our business and our ability to deliver top-line improvements and strong Adjusted EBITDA."
A copy of the Company's notice of the NCIB filed with the TSX may be obtained, by any shareholder without charge, by contacting the Company as set out below.
Certain statements included above are forward-looking in nature. Such statements can be identified by the use of forward-looking terminology such as "expects," "may," "will," "should," "intend," "plan," or "anticipates" or the negative thereof or comparable terminology. Forward-looking statements include plans, expectations, or other statements that are not statements of fact, including with respect to the purchase of Class A Shares under the NCIB, the terms and timing of any such purchases, the ability of SiriusXM Canada to grow and generate cash flow in the future, and the ability of SiriusXM Canada to deliver revenue improvements and maintain or grow Adjusted EBITDA and dividends. Although SiriusXM Canada believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. SiriusXM Canada's forward-looking statements are expressly qualified in their entirety by this cautionary statement. SiriusXM Canada makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made, except as required by applicable law.
About SiriusXM Canada
Sirius XM Canada Holdings Inc. (TSX: XSR) operates as SiriusXM Canada. SiriusXM Canada, with more than 2.7 million subscribers, is the country's leading audio entertainment company and broadcasts more than 130 satellite radio channels featuring premier sports, news, talk, entertainment and commercial-free music. SiriusXM Canada offers an array of content from the most recognized news, entertainment and major sports brands including the NHL, NFL, NBA, MLB, NASCAR, CNN, CBC, FOX, BBC, Howard Stern, Disney, Comedy Central and more.
SiriusXM programming is available on a variety of devices including pre-installed and after-market radios in cars, trucks and boats, smartphones and mobile devices, and consumer electronics products for homes and offices. SiriusXM programming is also available online at www.siriusxm.ca and on Apple and Android-powered mobile devices.
SiriusXM Canada has partnerships with every major automaker and its radio products are available at more than 2,500 retail locations nationwide. To find out more about SiriusXM Canada, visit our website at www.siriusxm.ca.
SiriusXM Canada has been designated one of Canada's 50 Best Managed Companies six years in a row and 2013, 2014 and 2015 rankings in PROFIT 500's list of Canada's Fastest Growing Companies.
SOURCE SiriusXM Canada
For further information: Odeta Kellici, SiriusXM Canada, Tel: 416-513-7416, Odeta.Kellici@siriusxm.ca; Kristen Dickson, NATIONAL Equicom, 416-848-1429, firstname.lastname@example.org