Calian Group Ltd. Announces Normal Course Issuer Bid
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Calian Group Ltd. Announces Normal Course Issuer Bid
Calian Group Ltd. (TSX: CGY) is pleased to announce that the Toronto Stock Exchange has accepted a notice filed by the Company regarding its intention to initiate a normal course issuer bid (NCIB). In connection with the NCIB, the Company has established an automatic share purchase plan (ASPP) with its designated broker to facilitate the purchases of its common shares.
Strategic Importance of the NCIB
CEO Kevin Ford emphasized the strategic importance of the ongoing share buyback program. He stated, "We believe that the market price of the Shares does not reflect its underlying value and therefore undervalues the Company’s future growth prospects." This reflects a firm commitment to the long-term vitality of Calian as they continue to advance their three-year strategic plan.
Progress and Investments
Calian has successfully completed three acquisitions, investing nearly $90 million in capital while maintaining a solid balance sheet. The leadership team is confident that repurchasing Shares is a prudent use of capital, aligning with their holistic growth strategy.
Details of the Normal Course Issuer Bid
The notice allows Calian to purchase up to 995,904 Shares over a 12-month period, commencing shortly. This represents approximately 10% of Calian’s public float as of mid-August 2024. The number of Shares purchased daily will adhere to the TSX rules, reaching a maximum of 1,974 Shares per day, equating to 25% of the average daily trading volume over the past six months.
Purchasing Conditions
Purchases will be made solely through the facilities of the TSX, or through alternative trading systems at prevailing market prices. All Shares acquired will be subsequently canceled. Furthermore, the ASPP with Desjardins Securities Inc. enables share purchases during blackout periods, ensuring the Company can maneuver strategically when market conditions are favorable.
Board's Perspective
The board of directors recognizes that recent market valuations do not reflect the actual value of the Shares. Depending on market conditions, the Board views purchasing Shares as advantageous for both the Company and its shareholders, as the repurchased Shares will enhance the equity interest for continuing shareholders.
Shareholder Considerations
No insider of the Company intends to sell Shares under the NCIB at this time. However, should personal circumstances change, they may choose to sell through market channels. All transactions conducted will offer equal benefits to all stakeholders involved.
Previous Normal Course Issuer Bid Insights
Calian’s previous normal course issuer bid, expiring soon, permitted the Company to repurchase up to 1,044,012 Shares. To date, 110,720 Shares have been repurchased at an average price just over $50 per Share, demonstrating the Company’s proactive approach to its capital management.
About Calian
Calian is dedicated to supporting people in their goals through effective communication, learning, and leading healthier lives. For 40 years, they’ve remained committed to values such as customer commitment, integrity, innovation, respect, and teamwork. Headquartered in Ottawa, Calian operates across North America and internationally, providing innovative solutions in healthcare, cybersecurity, and more. Discover their range of services to understand how they keep the world moving forward.
Contact Information
For media inquiries, please reach out to: media@calian.com
For investor relations, contact: ir@calian.com
Frequently Asked Questions
What is the purpose of the NCIB announced by Calian Group Ltd.?
The NCIB is intended to allow Calian to repurchase its Shares, reflecting the belief that they are undervalued in the market.
How many shares is Calian authorized to repurchase under the NCIB?
Calian is authorized to repurchase up to 995,904 Shares during the 12-month period of the NCIB.
What impact does the NCIB have on existing shareholders?
The NCIB is expected to enhance the equity interest of existing shareholders by reducing the number of Shares outstanding when repurchased Shares are canceled.
What notable investments has Calian made recently?
Calian has completed three acquisitions, investing close to $90 million while maintaining a strong financial position.
How does the automatic share purchase plan (ASPP) work?
The ASPP allows for the purchase of Shares during times when the Company is typically restricted from making purchases, thus ensuring flexibility in executing the buyback strategy.
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