CALGARY, Alberta (September 10, 2019)
-- Cervus Equipment Corporation (“Cervus” or the "Company") (TSX: CERV) announces that the Toronto Stock Exchange ("TSX") has accepted Cervus’ Notice of Intention to Make a Normal Course Issuer Bid (the "Bid") to purchase for cancellation, from time to time, as Cervus considers advisable, its issued and outstanding common shares (the "Shares").
There were 15,328,500 Shares issued and outstanding as at September 3, 2019. Of this amount, 10,500,586 Shares constitute the “public float”, calculated in accordance with the rules of the TSX. Pursuant to the Bid, Cervus is able to purchase for cancellation up to a maximum of 1,050,058 Shares, being equal to 10% of Cervus’ “public float” outstanding on September 3, 2019. Pursuant to the rules of the TSX, Cervus may not purchase more than 1,816 Shares in any one day, such amount being equal to 25% of the average daily trading volume of the Shares for the six months ended August 31, 2019. Notwithstanding the foregoing, pursuant to the rules of the TSX, Cervus may make one block purchase per calendar week that exceeds the daily repurchase restriction, subject to the maximum annual aggregate limit. Once the block purchase exception has been relied on, Cervus may not make any further purchases under the Bid for the remainder of that calendar day.
Purchases under the Bid will be made on the open market only through the facilities of the TSX and other Canadian marketplaces. Cervus has appointed Raymond James Ltd. as its broker, who will conduct the Bid on behalf of Cervus. The price that Cervus will pay for any Shares it purchases will be the prevailing market price of the Shares on the TSX at the time of such purchase. The actual number of Shares that may be purchased under the Bid for cancellation and the timing of any such purchases will be determined by Cervus.
In connection with the Bid, Cervus will enter into an automatic purchase plan (the "Plan") with its designated broker to allow for purchases of its Shares by the broker from time to time during the Bid including during internal blackout periods. Such purchases would be at the discretion of the broker based on parameters established by Cervus prior to any blackout period. Outside of these periods, Shares may be repurchased in accordance with management's discretion, subject to applicable law and the rules of the TSX. The Plan may be terminated by Cervus or its broker in accordance with its terms, or will terminate on the expiry of the Bid.
The Bid will commence on September 16, 2019 and will terminate on September 15, 2020 or such earlier time as the Bid is completed or terminated at the option of Cervus.
During Cervus’ last normal course issuer bid, which commenced on September 13, 2018 and which is set to terminate on September 12, 2019, Cervus repurchased 455,742 Shares at a weighted average price of $12.78 per share.
The normal course issuer bid will provide Cervus with additional flexibility to manage capital and generate value for shareholders.
About Cervus Equipment Corporation
Cervus acquires and operates authorized agricultural, transportation and materials handling equipment dealerships. The Company has interests in 63 dealerships in Canada, New Zealand, and Australia, employing more than 1,500 people. The primary equipment brands represented by Cervus include John Deere agricultural equipment; Peterbilt transportation equipment; and Clark, Sellick, Doosan, JLG and Baumann material handling equipment. The common shares of Cervus are listed on the Toronto Stock Exchange and trade under the symbol "CERV".
For more information please contact:
Angela Lekatsas – President & CEO
Adam Lowther – Chief Financial Officer
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release