The Toronto Stock Exchange accepted Chesswood Group Ltd.'s notice of intention to conduct a normal course issuer bid for the purchase of up to 1,031,791 of its 16,243,461 common shares outstanding, representing about 10% of Chesswood's public float as of Aug. 20.
The normal course issuer bid will start Aug. 26. It will end on the earlier of Aug. 25, 2020, the date Chesswood completes its purchases pursuant to the notice or the date of notice by Chesswood of termination of the bid.
The average daily trading volume of Chesswood for the past six months was 19,317, according to a news release. Up to 4,829 common shares, being roughly 25% of the average daily trading volume during the preceding six months, may be purchased by the company on any one day under its normal course issuer bid, except where purchases are made in accordance with block purchases exemptions under applicable TSX policies.
Chesswood previously sought and received approval from the TSX to purchase up to 1,043,895 of its outstanding common shares in connection with its previous normal course issuer bid, which expires Aug. 24. As of Aug. 20, Chesswood had purchased 284,360 common shares through the TSX at a weighted average price of C$10.2634 apiece.
The company also announced that it will enter into an automatic share purchase plan agreement with a broker to allow for the purchase of common shares under the normal course issuer bid at times when Chesswood normally would not be active in the market due to regulatory restrictions or self-imposed trading blackout periods.
Before entering into a blackout period, Chesswood may instruct the broker to make purchases under the normal course issuer bid in accordance with the terms of the automatic share purchase plan. The broker will determine such purchases in its sole discretion based on parameters established by Chesswood before the blackout period according to TSX rules and the automatic share purchase plan's terms, which have been pre-cleared by the TSX. Outside of these pre-determined blackout periods, common shares will be purchased according to management's discretion.
Common shares bought under the bid will be canceled following purchase.
