goeasy Ltd. Announces Renewal of Normal Course Issuer Bid & Provides Capital Management Update
Renewal of Normal Course Issuer Bid
Pursuant to the NCIB, goeasy may purchase for cancellation up to an aggregate of 1,243,781 common shares in the capital of the Company (the “Common Shares”), representing approximately 10% of goeasy’s public float. As at
Under the NCIB, goeasy may purchase up to 15,706 of its Common Shares on the TSX during any trading day, which represents 25% of the average daily trading volume of 62,825 Common Shares on the TSX for the six months ended
The NCIB will be conducted through the facilities of the TSX or alternative trading systems, if eligible, and the price that goeasy will pay for any Common Shares will be the market price prevailing at the time of purchase or such other price as may be permitted. Purchases under the NCIB will be made by means of open market transactions or other such means as a securities regulatory authority may permit, including pre-arranged crosses, exempt offers and private agreements under an issuer bid exemption order issued by a securities regulatory authority.
In connection with the NCIB renewal, the Company also announces that it has entered into an issuer automatic purchase plan agreement (the “Plan”) with an independent designated broker (the “Broker”) responsible for making purchases of Common Shares pursuant to the Plan. Under the Plan, the Broker will have sole discretion to purchase Common Shares pursuant to the NCIB during trading black-out periods established under the Company’s Insider Trading Policy, subject to the price limitations and other terms of the Plan and the rules of the TSX. The Company may instruct the Broker to make specific purchases and suspend or terminate the Plan, provided in each case that the Company certifies to the Broker that it is not in possession of any material undisclosed information and such request is otherwise in compliance with the terms of the Plan.
Share Purchases Under the Normal Course Issuer Bid
Under its current normal course issuer bid, which commenced on
The purchase for cancellation of Common Shares is part of the Company’s capital management strategy, which is designed to effectively allocate capital in a manner that will produce the greatest long-term return for shareholders. Provided the Company can access and maintain a sufficient level of liquidity to fund organic growth, invest in capital expenditures that produce future revenue growth, and maintain its target level of financial leverage, the Company distributes a quarterly dividend proportionate to approximately 35% of the prior year’s adjusted net earnings per share, while utilizing its excess capital to opportunistically invest in new business lines, or purchase its common shares when they are deemed to be trading below their intrinsic value. The Company continues to maintain a level of liquidity sufficient to fund its organic growth plans through 2023, allowing it to deploy excess capital in a manner consistent with this approach going forward.
Total Return Swap Agreement
Subsequent to quarter end, the Company entered into a 7-month total return swap agreement (the "TRS") to substantively hedge its market exposure related to an additional 75,000 contingent shares related to the equity held in Affirm. The TRS effectively results in the economic value of this hedged portion of the Company’s contingent equity in Affirm being settled in cash at maturity for
During the third quarter, the Company previously entered into a 9-month total return swap agreement to substantively hedge its market exposure related to 100,000 contingent shares related to the equity held in Affirm, with those shares being settled in cash at maturity for
goeasy Ltd., a Canadian company, headquartered in
Accredited by the
goeasy Ltd.’s. common shares are listed on the TSX under the trading symbol “GSY”. goeasy is rated BB- with a stable trend from S&P and Ba3 with a stable trend from Moody’s. Visit www.goeasy.com.
For further information contact:
President & Chief Executive Officer
Senior Vice President and Chief Corporate Development Officer