VANCOUVER, July 11, 2019 /PRNewswire/ - Aritzia Inc. ("Aritzia" or the "Company") (TSX: ATZ) today announced that the Toronto Stock Exchange ("TSX") has accepted its notice of intention to proceed with a normal course issuer bid.
Aritzia's Board of Directors believes that a normal course issuer bid represents an appropriate and desirable use of its available cash, after investments in stores and strategic infrastructure, to increase shareholder value and is in the best interest of Aritzia and its shareholders. As at June 2, 2019, the Company had approximately $35.8 million of cash on hand. Any purchases made under the normal course issuer bid will be made by Aritzia subject to favourable market conditions at the prevailing market price at the time of acquisition through the facilities of the TSX and/or alternative Canadian trading systems.
Pursuant to the notice, Aritzia may purchase up to 3,624,915 of its subordinate voting shares ("Shares"), representing approximately 5% of the public float of 72,498,302 Shares, during the twelve month period commencing July 16, 2019 and ending July 15, 2020. As at July 2, 2019 there were 83,366,268 Shares issued and outstanding. Under the normal course issuer bid, other than purchases made under block purchase exemptions, Aritzia may purchase up to 86,043 Shares on the TSX during any trading day, which represents approximately 25% of 344,173, which represents the average daily trading volume on the TSX for the most recently completed six calendar months prior to the TSX's acceptance of the notice of the NCIB. Any Shares purchased under the normal course issuer bid will be cancelled.
Under its prior normal course issuer bid that commenced on May 15, 2018 and was suspended in March, 2019, Aritzia previously sought and received approval from the TSX to repurchase up to 5,429,658 Shares. The Company repurchased 549,880 Shares for cancellation under its prior normal course issuer bid at a volume weighted average price of $17.07 per Share. All purchases were made through the facilities of the TSX and/or alternative Canadian trading systems on which the Shares trade from time to time.
Although the Company intends to purchase Shares under its normal course issuer bid, there can be no assurances that any such purchases will be completed. Any purchases made under the normal course issuer bid will be made by Aritzia at the prevailing market price at the time of acquisition and through the facilities of the TSX. The Company may rely on an automatic purchase plan during the NCIB. The automatic purchase plan would allow for purchases by the Company of Shares during certain pre-determined blackout periods, subject to certain parameters and approval of the TSX.
Aritzia is a vertically integrated, innovative design house of fashion brands. The Company designs apparel and accessories for its collection of exclusive brands. The Company's expansive and diverse range of women's fashion apparel and accessories addresses a broad range of style preferences and lifestyle requirements. Aritzia is well known and deeply loved by its clients in Canada with growing client awareness and affinity in the United States and outside of North America. Aritzia aims to delight its clients through an aspirational shopping experience and exceptional client service that extends across its more than 90 boutiques and eCommerce business, aritzia.com.
Certain information contained in this press release may constitute forward-looking information under applicable securities laws, including statements related to the Company's normal course issuer bid, investments in store and strategic infrastructure and other statements that are not historical facts. This information is based on management's reasonable assumptions and beliefs in light of the information currently available to us and are made as of the date of this press release. However, we do not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws in Canada. Actual results and the timing of events may differ materially from those anticipated in the forward-looking information as a result of various factors, including those described in "Risk Factors" which are described in the Company's annual information form dated May 9, 2019 for the fiscal year ended March 3, 2019 (the "AIF"). The Company cautions that the list of risk factors and uncertainties is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. See "Forward-looking Information" and "Risk Factors" in the AIF for a discussion of the uncertainties, risks and assumptions associated with these statements.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this statement.
SOURCE Aritzia Inc.