MISSISSAUGA, ON, July 5, 2019 /CNW/ - Temple Hotels Inc. (TSX: TPH) ("Temple") today announced that the Toronto Stock Exchange has accepted its notice of intention to make a normal course issuer bid ("NCIB") through the facilities of the TSX and/or alternative Canadian trading systems.
The notice provides that Temple may, during the twelve month period commencing July 9, 2019 and ending on July 8, 2020, purchase for cancellation up to 3,753,349 common shares ("Common Shares") in total, being approximately 5% of the issued and outstanding Common Shares. The daily repurchase restriction for the Common Shares, other than block purchases, is 11,272. The price which Temple will pay for any such Common Shares will be the market price at the time of acquisition. The actual number of Shares which may be purchased and the timing of any such purchases will be subject to compliance with the TSX guidelines.
Under its previous normal course issuer bid for the period of March 15, 2018 to March 14, 2019, Temple was approved to purchase up to 1,263,495 Common Shares through the facilities of the TSX and/or alternative trading systems. During the last 12-month period 147,900 shares were purchased for cancellation at an average cost per share of $3.04. As at July 2, 2019, there were 75,066,987 Common Shares outstanding. Temple's average daily trading volume for the prior six months is 45,090.
Temple sought approval of the NCIB because it believes that, from time to time, the market price of the Common Shares may not fully reflect their value. Temple believes that, in such circumstances, the purchase of Common Shares may represent an attractive use of funds for Temple.
Temple believes that its Common Shares have been trading in a price range which does not adequately reflect the value of such Common Shares in relation to the business of Temple and its future business prospects. As a result, depending upon future price movements and other factors, Temple believes that its outstanding Common Shares may represent an attractive investment for itself. Furthermore, the purchases may benefit all persons who continue to hold Common Shares by increasing their equity interest in Temple. All Common Shares purchased by Temple under the normal course issuer bid will be cancelled.
About Temple Hotels Inc.
Temple is a hotel investment company with properties located across Canada. Temple is listed on the Toronto Stock Exchange under the symbol TPH (common shares). The primary long‑term investment objectives of the Company are to yield stable and growing cash flows and to maximize the long‑term share value of the Company through the active management of its assets, accretive acquisitions, and the performance of value‑added capital improvement programs on selected properties, as deemed appropriate. For further information on Temple, please visit our website at www.templehotels.ca.
SOURCE Temple Hotels Inc.
For further information: Paul Miatello, Chief Financial Officer, T 905-281-3800; Beverley G. Flynn, Senior Vice President, T 905-281-3800