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EDMONTON, Alta., March 30, 2022 (GLOBE NEWSWIRE) — Melcor Developments Ltd. (TSX: MRD), an Alberta-based real estate development and asset management company, today announced that the Toronto Stock Exchange has accepted its notice of intention to make a normal course issuer bid by through the facilities of the TSX and alternative trading systems.
The notice provides that Melcor may, during the twelve-month period beginning April 1, 2022 and ending March 31, 2023, purchase for cancellation up to 1,641,627 common shares in the aggregate, or approximately 5% of its issued and outstanding common shares. The daily redemption restriction for common shares is 1,281.
The price Melcor will pay for such common shares will be the market price at the time of acquisition. The actual number of Common Shares that may be purchased and the timing of such purchases will be subject to compliance with TSX guidelines.
Under the normal course issuer bid expiring on March 31, 2022, 373,761 common shares have been purchased for cancellation through the facilities of the TSX in the last twelve months (in March 18, 2022) at a weighted average price per common share of $13.91 (1,654,553 had been approved for redemption). As of March 28, 2022, there were 32,832,559 common shares of Melcor outstanding and the average daily trading volume for the six-month period ending February 28, 2022 was 5,127.
Melcor believes that, at times, its common shares trade in a price range that does not adequately reflect the value of such common shares relative to Melcor’s business and its future business prospects. Accordingly, depending on future price movements and other factors, Melcor believes that its outstanding common shares may represent an attractive investment for itself. In addition, the purchases may benefit all persons who continue to hold common stock by increasing their ownership in Melcor. All common shares purchased by Melcor pursuant to the normal course issuer bid will be cancelled.
In connection with the launch of the issuer bid, the company also announced that it had entered into an automatic share purchase plan (“ASPP”) agreement with a broker to enable the purchase of shares shares under the tender offer at times when the company would not normally be active in the market due to regulatory restrictions or self-imposed trading blackout periods. Prior to entering any such restricted or blackout period, the Company may, but is not required to, instruct the Designated Broker to make purchases under the OPRCA in accordance with the terms of the RPEA. Such purchases will be determined by the Broker in its sole discretion based on parameters established by the Company prior to the Restricted or Blackout Period in accordance with the rules of the TSX, applicable securities laws and the terms of the AESP. Outside of such predetermined restricted or blackout periods, Common Shares will be purchased at management’s discretion, in accordance with TSX rules and applicable securities laws.
About Melcor Developments Ltd.
Melcor is a diversified real estate development and asset management company with a rich heritage of real estate innovation since 1923.
Through integrated operating divisions, Melcor manages the full real estate development lifecycle: raw land acquisition, community planning, construction and development, and management of income-generating office, commercial and residential assets. Melcor develops and manages mixed-use residential communities, retail and industrial parks, office buildings, shopping centers and golf courses.
Melcor is committed to building communities that enrich the quality of life – communities where people live, work, shop and play.
Certain information in this press release may contain forward-looking statements and necessarily involves risks and uncertainties, some of which are beyond Melcor’s control. Actual results, performance or achievements could differ materially from those expressed or implied by such forward-looking statements and, therefore, no assurance can be given that the events anticipated by the forward-looking statements will occur or will occur, or whether between them do it, what benefits Melcor will derive from it. Additional information about these and other factors that could affect Melcor is included in reports filed with Canadian securities regulators and can be viewed on SEDAR’s website (www.sedar.com). Additionally, the forward-looking statements contained in this press release are made as of the date of this press release, and Melcor undertakes no obligation to publicly update or revise any of the forward-looking statements included, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.
Contact Information: Media Contact Nicole Forsythe 780.945.4707 1.855.673.6931 (x4707) [email protected]
Source: Melcor Developments Ltd.