TORONTO, March 30, 2012 /CNW/ - Xceed Mortgage Corporation ("Xceed" or "the Company") (TSX: XMC), a Canadian provider of insured mortgages today announced that the Toronto Stock Exchange (TSX) has accepted a notice filed by Xceed of its intention to make a normal course issuer bid. As of March 29, 2012, Xceed had 27,292,057 common shares outstanding. The notice provides that under the normal course issuer bid, Xceed may purchase up to 1,364,602 common shares, representing 5% of the current common shares issued and outstanding.
In addition, the notice provides that the aggregate number of shares that Xceed may purchase during any trading day will not exceed 2,285 shares, being 25% of the average daily trading volume of the shares based on their trading volume on the TSX for the most recently completed six calendar months preceding the date of the notice of intention. The company also is able to make block purchases through the facilities of the TSX in accordance with the exchange's rules.
The normal course issuer bid will commence on April 4, 2012 and will terminate on April 3, 2013, or on such earlier date as the company may complete its purchases under the bid.
Under its most recent normal course issuer bid that ended March 20, 2012, the Company had purchased 206,900 shares at an average weighted purchase price of $0.84.
The common shares will be acquired through the facilities of the TSX and the purchase and payment for the shares will be made in accordance with the requirements of the exchange and all other applicable laws. The price paid for any common shares acquired will be the market price of the shares at the time of acquisition. All shares acquired under this bid will be cancelled. Xceed believes that the current trading price of its common shares is well below the book value of Xceed's assets and that the common shares are undervalued. As a result, depending upon future price movements and other factors, Xceed believes that its outstanding common shares represent an attractive investment.
Xceed Mortgage Corporation, based in Toronto, is a Canadian provider of insured residential mortgages that it originates in Canada. The Company has approximately $1.0 billion of mortgages and other assets under administration. Xceed's shares are traded on the Toronto Stock Exchange (TSX: XMC).