WINNIPEG – Business – The North West Company Inc. (the “Company” or “North West”) announced today that the Toronto Stock Exchange (the “TSX”) has accepted notice of the Company’s intention to make a normal course issuer bid (“NCIB”) for a portion of its common voting shares and variable voting shares (the “Shares”) as appropriate opportunities arise from time to time. The board of directors of the Company believes that the purchase by the Company of a portion of its outstanding Shares may from time to time be an appropriate use of available resources and in the best interests of the Company.
Pursuant to the NCIB notice filed with the TSX, the Company may acquire up to a maximum of 4,807,437 of its Shares, or approximately 10% of its public float as of November 1, 2020 for cancellation over the next 12 months. As of November 1, 2020, the Company had 48,794,093 issued and outstanding Shares.
Purchases under the NCIB will be made through the facilities of the TSX or through Canadian alternative trading systems and in accordance with applicable regulatory requirements at a price per Share equal to the market price at the time of acquisition. The number of Shares that can be purchased pursuant to the NCIB is subject to a current daily maximum of 35,571 Shares (which is equal to 25% of 142,285, being the average daily trading volume of the Shares during the last six calendar months), subject to the Company’s ability to make one block purchase of Shares per calendar week that exceeds such limits.
In connection with the NCIB, the Company has established an automatic securities purchase plan (the “Plan”) with its designated broker to facilitate the purchase of Shares under the NCIB at times when the Company would ordinarily not be permitted to purchase its Shares due to regulatory restrictions or self-imposed blackout periods. Under the Plan, before entering a self-imposed blackout period, North West may, but is not required to, ask the designated broker to make purchases under the NCIB within specified parameters. Outside of the pre-determined blackout periods, Shares may be purchased under the NCIB based on the discretion of the Company’s management, in compliance with TSX rules and applicable securities laws. The automatic securities purchase plan will be effective as of November 12, 2020.
All Shares purchased under the NCIB will be cancelled upon their purchase. The Company intends to fund the purchases out of its available resources. The Company may begin to purchase Shares on November 12, 2020 and the NCIB will terminate on November 11, 2021, or such earlier date as the Company completes its purchases pursuant to the NCIB or provides notice of termination.