TORONTO, January 20, 2022 /CNW/ – Chesswood Group Limited (“Chesswood”) (TSX: CHW) announced today that the Toronto Stock Exchange (the “TSX”) has accepted its notice of intention to make an issuer bid in the normal course of business (the “NCIB”) to enable it to purchase up to 980,230 of its 16,858,197 outstanding common shares (“common shares”), representing approximately 10% of Chesswood’s public float of 9,802,301 common shares as of January 11, 2022. Chesswood’s average daily trading volume over the past six months was 15,544, and a maximum of 3,886 common shares (or approximately 25% of the average daily trading volume over the previous six months) may be traded. purchased by Chesswood on any day under its normal course issuer bid, except when purchases are made pursuant to “bulk purchase” exemptions under applicable TSX policies.
The normal course issuer bid will commence on January 24, 2022, and will end on the earliest of the following dates: January 23, 2023, the date Chesswood completes its purchases pursuant to the notice of intention to make a normal course issuer bid filed with the TSX or the date Chesswood gives notice of termination of the offer.
Chesswood previously sought and received approval from the TSX to purchase up to 932,296 of its outstanding common shares under its normal course issuer bid, which expired on 1st December, 2021. Chesswood repurchased 488,040 of its shares under the normal course issuer bid at an average cost of $10.06 per share. Chesswood believes that the market price of Common Shares at times may be attractive and that the purchase of Common Shares from time to time would be an appropriate use of its funds in light of the potential benefits to remaining shareholders.
Chesswood also announces that the December 31, 2021 it has entered into an automatic stock purchase plan agreement (the “ASPP”) with a broker to permit the purchase of common shares under the issuer bid at times when Chesswood would not normally be not active in the market due to regulatory restrictions or self-imposed trading blackout periods. Prior to entering a blackout period, Chesswood may, but is not obligated to, instruct the Designated Broker to make purchases under the OPRCA in accordance with the terms of the ASPP. Such purchases will be determined by the Broker in its sole discretion based on parameters established by Chesswood prior to the Blackout Period in accordance with the Rules of the TSX and the Terms of the ASPP. The terms of the ESAP have been pre-approved by the TSX. Outside of these pre-determined blackout periods, Common Shares will be purchased at management’s discretion.
Chesswood will make purchases on the open market through the facilities of the TSX in accordance with the rules and policies of the TSX or alternative trading systems in Canada. The price Chesswood will pay for such common shares will be the market price of such common shares on the TSX at the time of acquisition. Common Shares purchased under the Offer will be canceled following purchase.
January 2022 Dividend
Chesswood also announced today that a dividend in the amount of three cents per share ($0.03) has been declared for the month of January, payable on February 15, 2022 to shareholders of record at the close of business on January 31, 2022.
Chesswood for the purposes of the income tax law (Canada) and any similar provincial law indicates that the dividend declared for the month ending January 31, 2022 and all future dividends will be eligible dividends, unless otherwise specified.
About Chesswood Group Limited
Through two wholly-owned subsidiaries in United States and four subsidiaries in Canada, Chesswood Group Limited is a North American specialty finance company listed on the Toronto Stock Exchange. ColoradoPawnee Leasing Corporation, founded in 1982, finances a highly diversified portfolio of commercial equipment leases and loans through relationships with more than 600 brokers in United States. Tandem Finance Inc. provides financing in the United States through the equipment vendor channel. In Canada, Blue Chip Leasing Corporation has been offering and servicing commercial equipment leases and loans since 1996 and today operates through a nationwide network of more than 50 brokers. Vault Credit Corporation specializes in equipment rentals and commercial loans through Canada, enabling customizable financing solutions while catering to a wide range of credit levels, equipment types and industries by offering industry-leading service levels, experienced underwriters and account administrators. Vault Home was launched in September 2021 and focuses on providing home improvements and other consumer finance solutions in Canada. Rifco Inc. aims to be the best alternative car finance company. Its mission is to help deserving Canadians own a car. Rifco seeks to create sustainable, long-term competitive advantages through personalized dealer partnerships, innovative products, the use of cutting-edge data and analytics, and industry-leading collections practices.
Situated at Toronto, Canada, shares of Chesswood Group Limited trade on the Toronto Stock Exchange under the symbol CHW.
To find out more about Chesswood Group Limited, visit www.ChesswoodGroup.com.
The Chesswood Group Limited operating business websites are:
NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.
SOURCE Chesswood Group Limited
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