SOLUTION FINANCIAL INC. ANNOUNCES RENEWAL OF NORMAL COURSE ISSUER BID UNDER THE FACILITIES OF THE TSX
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
VANCOUVER, BC, Feb. 22, 2024 /CNW/ - Solution Financial Inc. (TSX: SFI) ("Solution" or the "Company") a provider of luxury automotive and yacht leasing in Canada, announced today that it has received approval from the Toronto Stock Exchange ("TSX") for the renewal of its Normal Course Issuer Bid (the "Renewed NCIB").
Under the Renewed NCIB, a total of up to 4,319,913 common shares in the capital of the Company ("Shares") may be purchased through the facilities of the TSX and may also be made through alternative Canadian trading systems, representing 5% of the issued and outstanding Shares of the Company, and any such purchases will be at market prices. As at February 14, 2024, Solution had 86,398,273 Shares issued and outstanding.
The term of the Renewed NCIB will commence on February 27, 2024 and continue until February 26, 2025, when the Renewed NCIB expires, or such earlier date as the Company completes its purchases pursuant to the Renewed NCIB and notice of intention filed with the TSX. The purpose of the Renewed NCIB is to enable the Company to purchase Shares when it believes them to be undervalued in the market and such purchase is an appropriate use of the Company's available funds and in its best interest to do so.
The Company will continue to engage PI Financial Corp. ("PI") to act as the broker through which the Renewed NCIB will be conducted including entering into an automatic share purchase plan with PI.
All purchases of Shares under the Renewed NCIB may be made on the TSX, at the market price at the time of purchase in accordance with the rules and policies of the TSX. The rules and policies of the TSX contain restrictions on the number of Shares that can be purchased under the Renewed NCIB based on the average daily trading volumes on the TSX. As a result of such restrictions, the maximum number of Shares which can be purchased per day during the Renewed NCIB on the TSX is 2,405, which is 25% of the average daily trading volume on the TSX for the prior six months (being 9,623 Shares on the TSX for the period from August 1, 2023 to January 31, 2024).
Solution's most recent normal course issuer bid (the "2023 NCIB") commenced on February 27, 2023, for the purchase of up to 4,364,513 Shares, and is set to expire on February 26, 2023. Solution repurchased 892,000 Shares for cancellation under the 2023 NCIB at a volume weighted average repurchase price of $0.31 per Share. All repurchases were made through the facilities of the TSX.
The Company reserves the right to terminate the Renewed NCIB earlier if it feels it is appropriate to do so. Solution believes that the purchase of its Shares at recent market prices is an appropriate investment by Solution since, in its view, recent market prices do not reflect the underlying value of Solution's business. The Renewed NCIB will provide Solution with the flexibility to purchase Shares as part of its capital management strategy which is designed to maintain healthy regulatory capital ratios while balancing the objective of generating shareholder value.
All Shares acquired by Solution under the Renewed NCIB will be cancelled. Repurchases will be subject to compliance with applicable Canadian securities laws.
Solution Financial was incorporated in 2004 and specializes in sourcing and leasing luxury and exotic vehicles, yachts and other high value assets. Solution works with a select group of automotive and marine dealerships providing lending solutions to clients who cannot obtain leasing terms with traditional Canadian financial institutions or other sub-prime lenders. Typical customers include new immigrants, business owners and international students. Solution Financial provides a unique leasing experience whereby it partners with its clients to help them navigate the challenges of acquiring, insuring, maintaining and upgrading vehicles and luxury assets more frequently than most leasing companies.
ON BEHALF OF THE BOARD
(signed) "Bryan Pang"
Brian Pang
President, CEO and Director
This press release contains "forward-looking information" as defined under applicable Canadian securities laws. This information includes, but is not limited to, statements concerning our objectives, our strategies to achieve those objectives, as well as statements made with respect to management's beliefs, plans, estimates, projections and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking information generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or "continue", or similar expressions suggesting future outcomes or events. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Although forward-looking information contained in this press release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with this forward-looking information.
The forward-looking information contained in this press release is made as of the date of this press release and should not be relied upon as representing Solution's views as of any date subsequent to the date of this press release. Except as required by applicable law, management and Solution's Board of Directors undertake no obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
SOURCE solution financial inc.
please contact Sean Hodgins at (778) 318-1514.
Share this article