VEGREVILLE, AB, May 26, 2015 /CNW/ - TerraVest Capital Inc. ('TerraVest" or the "Corporation") (TSX: TVK) announced today that it has received the approval of the Toronto Stock Exchange (the "TSX") to make a normal course issuer bid (the "Bid") for up to $2,100,000 aggregate principal amount of its issued and outstanding 7.00% convertible unsecured subordinated debentures due June 30, 2020 (the "Debentures") on the TSX.
Purchases under the Bid may commence on May 28, 2015 and will terminate on May 27, 2016, or on such earlier date as the Bid is complete. Purchases of Debentures will be made through the facilities of the TSX in accordance with its rules. Purchases under the Bid may also be made through alternative Canadian trading platforms. The average daily trading volume of the Debentures ("ADTV") since the Debentures began trading on the TSX on April 17, 2015 is 202,800 Debentures. Subject to the TSX's block purchase exception, on any trading day, purchases under the Bid will not exceed 25% of the ADTV. The price that the Corporation will pay for any Debentures purchased under the Bid will be the prevailing market price at the time of purchase. Any Debentures purchased by the Corporation will be cancelled.
As of May 25, 2015, there was $25,000,000 aggregate principal amount of Debentures issued and outstanding. The $2,100,000 aggregate principal amount of Debentures that may be repurchased under the Bid represent approximately 10.0% of the "public float" (as defined in the TSX Company Manual) of the Corporation's issued and outstanding Debentures on May 25, 2015.
Pursuant to the Corporation's normal course issuer bid which commenced on December 18, 2014, TerraVest has purchased 29,000 of its common shares at a weighted average price of $5.85 per common share.
The Board of Directors of the Corporation has authorized the Bid because it believes that it is an efficient use of the Corporation's financial resources to purchase Debentures when the market price of the Debentures does not fully reflect their underlying value.
SOURCE TerraVest Capital Inc.
For further information: Mitchell Gilbert, Chief Investment Officer, TerraVest Capital Inc., (416) 364-0064, [email protected], OR; Paul A. Casey, Chief Financial Officer, TerraVest Capital Inc., (780) 632-2040, [email protected]