CALGARY, Nov. 28, 2019 /CNW/ - Strad Inc. ("Strad" or the "Company") (TSX: SDY) today announced that the Toronto Stock Exchange ("TSX") has accepted Strad's notice of intention to renew its normal course issuer bid for a further one year term (the "NCIB"). Under the NCIB, Strad may purchase for cancellation, from time to time, up to a maximum of 3,013,722 class A shares of the Company ("Common Shares"), which represents 10% of the public float of the 54,862,049 issued and outstanding Common Shares as at November 19, 2019. Purchases of Common Shares may be made on the open market through the facilities of the TSX and through other alternative Canadian trading platforms at the prevailing market price at the time of such transaction. The actual number of Common Shares that may be purchased for cancellation and the timing of any such purchases will be determined by Strad, subject to a maximum daily purchase limitation of 2,999 Common Shares which equates to 25% of Strad's average daily trading volume of 11,998 for the six months ended October 31, 2019. Strad may make one block purchase per calendar week which exceeds the daily repurchase restrictions. Any Common Shares that are purchased by Strad under the NCIB will be cancelled. The NCIB will commence on December 3, 2019 and will terminate on December 2, 2020 or such earlier time as the NCIB is completed or terminated at the option of Strad.
Strad has entered into an automatic securities purchase plan with Raymond James Ltd. in connection with the NCIB. The automated plan allows the Company to repurchase its Common Shares during periods of blackout or other periods in which the Company would not ordinarily be permitted to repurchase its Common Shares. The automatic securities purchase plan is subject to certain parameters set by the Company from time to time which govern the automatic purchase of Common Shares. Pursuant to the Company's previous NCIB which expired yesterday, the Company purchased and cancelled an aggregate of 2,668,971 Common Shares at an average price paid of $1.56 per Common Share.
Strad believes that from time to time the market price of the Common Shares may not reflect their underlying value and that, at such times, the purchase of Common Shares for cancellation may represent an opportunity to enhance shareholder value. Strad intends to use the NCIB to enhance total long-term shareholder returns in conjunction with management's strategic focus on growing the Company's Industrial Matting business.
Strad specializes in industrial matting and equipment rentals for projects of any size, from a network of branches across Canada and the United States. Strad aims to exceed customer expectations in many industrial sectors, including Pipeline, Oil & Gas, Transmission & Distribution, and Construction.
Strad is headquartered in Calgary, Alberta, Canada. Strad is listed on the Toronto Stock Exchange under the trading symbol "SDY".
Caution Regarding Forward-Looking Statements
This news release contains certain statements that may constitute forward-looking information within the meaning of applicable securities laws. This information includes, but is not limited to Strad's intentions with respect to the NCIB and including expectations related to additional purchases thereunder. Although Strad believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Strad can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions by their very nature they involve inherent risks and uncertainties. Actual results could defer materially from those currently anticipated due to a number of factors and risks. Certain of these risks are set out in more detail in Strad's Annual Information Form which has been filed on SEDAR and can be accessed at www.sedar.com.
The forward-looking statements contained in this press release are made as of the date hereof and Strad undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE Strad Inc.
For further information: Andy Pernal, President & Chief Executive Officer, (403) 775-9202, Email: [email protected]; Michael Donovan, Chief Financial Officer, (403) 775-9221, Email: [email protected], Stradinc.com