MONTREAL, May 2, 2022 /CNW Telbec/ – Cogeco Communications Inc. (the “Company” or “Cogeco Communications”) announces that the Toronto Stock Exchange (the “TSX”) has accepted its Notice of Intention for a Normal Course Issuer Bid of its Subordinate Voting Shares (the ” Restricted Shares”). Purchases pursuant to the advisory will not begin until May 4, 2022 and will not continue beyond May 3, 2023.
The notice will allow Cogeco Communications to acquire up to 1,500,000 subordinate shares for cancellation, representing approximately 4.9% of the 30,610,822 subordinate shares outstanding and 7.6% of the 19,609,056 shares constituting the “free float” of the issued and outstanding shares of the Company as of the date of April 22, 2022.
Cogeco Communications currently believes that the purchase of its subordinate shares under the normal course issuer bid is an appropriate and desirable use of available cash to enhance shareholder value and provides returns of additional investment to its shareholders.
All purchases will be made through the facilities of the TSX or Canadian alternative trading systems, if eligible, and will be in accordance with their rules. Purchases under the normal course issuer bid will be effected through open market transactions.
Under the rules of the TSX, the Company will be permitted to purchase daily, through the facilities of the TSX, a maximum of 19,367 Restricted Shares representing 25% of the average daily trading volume, as calculated under the rules of the TSX. In addition, the Company may make, once a week, a block purchase (as such term is defined in the TSX Company Manual) of Restricted Shares which are not held directly or indirectly by insiders of the Company, in accordance with the rules of the TSX. Restricted shares purchased under the normal course issuer bid will be cancelled.
The price to be paid by the Company for any subordinate share will be the market price at the time of acquisition, plus brokerage fees, if any.
The Company has also entered into an automatic share purchase plan with a designated broker to permit the purchase of subordinate voting shares under the normal course issuer bid at times where the Company would not normally be permitted to purchase shares due to regulatory or self-purchase restrictions. blackout periods imposed.
Under its current normal course issuer bid which commenced on May 4, 2021 and will end on May 3, 2022, Cogeco Communications has received approval from the TSX to purchase for cancellation up to 2,068,000 subordinate shares. During the period of May 4, 2021 for April 22, 2022 inclusive, Cogeco purchased through the facilities of the TSX and Canadian alternative trading systems a total of 1,137,525 subordinate shares at a weighted average price per subordinate share of $110.48.
About Cogeco Communications
Rooted in the communities it serves, Cogeco Communications inc. ACC is a growing competitive force in the North American telecommunications industry with a 65-year heritage. Through its Cogeco Connexion and Breezeline (formerly Atlantic Broadband) business units, Cogeco Communications provides Internet, video and telephone services to 1.6 million residential and business customers in Quebec and Ontario in Canada as well as in twelve states of United States. To learn more about Cogeco Communications’ growth strategy and its commitment to supporting its communities, promoting inclusive growth and fighting climate change, visit us online at corpo.cogeco.com.
Certain statements contained in this press release may constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to Cogeco Communications Inc.’s future prospects. (“Cogeco Communications” or the “Corporation”) and anticipated events, activities, operations, financial performance, financial condition or results and, in some cases, may be identified by terminology such as “may” ; “will be”; “should”; “wait”; “plan”; “anticipate”; “believe”; “intention”; “estimate”; “predict”; “potential”; “Continue”; “foresee”, “ensure” or other similar expressions concerning matters which are not historical facts. In particular, statements regarding the Company’s financial direction, future operating results and economic performance, objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions, including expected growth, results of operations, purchase price allocation, tax rates, weighted average cost of capital, performance and business prospects and opportunities. business, which Cogeco Communications deems reasonable at the current date. See in particular the “Corporate Objectives and Strategies” and “Financial Guidance for Fiscal 2022” sections of the Company’s 2021 Annual MD&A and the “Revised Financial Guidance for Fiscal 2022” of the MD&A for a discussion of certain key economic, market and operating assumptions made by us in preparing forward-looking statements. Although management considers these assumptions to be reasonable based on information currently available to the Company, they may prove to be incorrect. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what Cogeco Communications currently anticipates. These factors include risks such as competitive risks, business risks (including potential disruption to our supply chain compounded by increasing instability resulting from the Ukraine, increased transportation times, scarcity of raw materials and shortage of chipsets, semiconductors and key telecommunications equipment), regulatory risks, technological risks (including cybersecurity), financial risks (including changes in exchange rates and interest rates), economic conditions (including high inflation and potential recession), man-made and natural threats to our network, infrastructure and systems, community acceptance risks, ethical behavior risks, ownership risks, litigation risks, and public health crises and emergencies such as the COVID-19 pandemic, many of which are beyond the Company’s control . For more comprehensive information on these risks and uncertainties, the reader is invited to refer to the “Uncertainties and main risk factors” sections of the Company’s 2021 annual management report and the current management report. These factors are not intended to represent a complete list of factors that could affect Cogeco Communications and future events and results could differ materially from what management currently anticipates. The reader should not place undue importance on the forward-looking information contained in this press release which represents the expectations of Cogeco Communications as of the date of this press release (or as of the date on which they are otherwise stated) and are subject to change. after such date. Although management may choose to do so, the Company is under no obligation (and expressly disclaims any such obligation) and does not undertake to update or change this information at any time, whether as a result of new information, future events or otherwise, except as required by law. All amounts are quoted in Canadian dollars, unless otherwise specified.
Senior Vice President and Chief Financial Officer
Cogeco Communications Inc.
Such. : 514-764-4700
Senior Vice President and Head of Public Affairs, Communications and Strategy
SOURCE Cogeco Communications Inc.
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