VEGREVILLE, AB, Nov. 22, 2013 /CNW/ - TerraVest Capital Inc. ("TerraVest" or the "Corporation") (TSX: TVK) announced today that it has received the approval of the Toronto Stock Exchange (the "TSX") to make a normal course issuer bid (the "Bid") for up to 621,305 of its issued and outstanding common shares (the "Shares") on the TSX.
The Corporation has also entered into an "automatic securities purchase plan" (as defined under applicable Canadian securities laws) with National Bank Financial Inc. for the purpose of making purchases under the Bid (the "Plan"). Purchases under the Bid will be determined by National Bank Financial Inc. in its sole discretion, without consultation with the Corporation, subject to the limitations of the Plan and the rules of the TSX. The Plan constitutes an "automatic plan" for purposes of applicable Canadian securities laws and has been reviewed by the TSX. The Plan was established to provide standard instructions regarding how TerraVest's Shares are to be purchased under the Bid. Accordingly, TerraVest may purchase its Shares in accordance with the Plan on any trading day during the issuer bid including during self-imposed trading blackout periods. TerraVest may otherwise vary, suspend or terminate the Plan only if it does not have material non-public information, the decision to vary, suspend or terminate the Plan is not taken during a self-imposed trading blackout period and any variation, suspension or termination is made in accordance with the terms of the Plan.
Purchases under the Bid may commence on November 26, 2013 and will terminate on November 25, 2014, or on such earlier date as the Bid is complete. Purchases of Shares will be made through the facilities of the TSX in accordance with its rules. The average daily trading volume of the Shares for the previous six calendar months ("ADTV") was 1,362 Shares. Subject to the TSX's block purchase exception, on any trading day, purchases under the Bid will not exceed 1,000 Shares. The price that the Corporation will pay for any Shares purchased under the Bid will be the prevailing market price at the time of purchase and any Shares purchased by the Corporation will be cancelled.
As of November 12, 2013, there were 12,426,103 Shares issued and outstanding. The 621,305 Shares that may be repurchased under the Bid represent approximately 5.0% of the issued and outstanding Shares on November 12, 2013.
As at November 12, 2013, pursuant to its normal course issuer bid in place since November 26, 2012, TerraVest has purchased 102,800 Common Shares at a weighted average price of $3.59 per Share.
The Board of Directors of the Corporation has authorized the Bid because it believes that it is an efficient use of the Corporation's financial resources to purchase Shares when the market price of the Shares does not fully reflect their underlying value.
SOURCE TerraVest Capital Inc.