Calian Group Ltd. Announces Normal Course Issuer Bid
Calian Group Ltd. (TSX: CGY) is excited to share that the Toronto Stock Exchange has approved a notice submitted by the Company regarding its plan to start a normal course issuer bid (NCIB). As part of this initiative, the Company has set up an automatic share purchase plan (ASPP) with its designated broker to streamline the acquisition of its common shares.
Strategic Importance of the NCIB
CEO Kevin Ford highlighted the strategic significance of the ongoing share buyback program. He remarked, "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 statement underscores Calian's commitment to its long-term health as they work towards their three-year strategic plan.
Progress and Investments
Calian has successfully completed three acquisitions, investing nearly $90 million in capital while maintaining a robust balance sheet. The leadership team believes that repurchasing Shares is a wise use of capital that aligns with their comprehensive growth strategy.
Details of the Normal Course Issuer Bid
The notice permits Calian to acquire up to 995,904 Shares over the next 12 months, starting soon. This figure represents about 10% of Calian’s public float as of mid-August 2024. The daily purchase limit will comply with TSX regulations, allowing a maximum of 1,974 Shares per day, which is 25% of the average daily trading volume over the last six months.
Purchasing Conditions
All purchases will be made exclusively through the TSX facilities or alternative trading systems at current market prices. Any Shares acquired will be canceled afterward. Additionally, the ASPP with Desjardins Securities Inc. allows for share purchases during blackout periods, enabling the Company to act strategically when market conditions are favorable.
Board's Perspective
The board of directors acknowledges that current market valuations do not accurately reflect the true value of the Shares. Depending on market conditions, the Board considers buying back Shares to be beneficial for both the Company and its shareholders, as repurchased Shares will increase the equity interest of remaining shareholders.
Shareholder Considerations
Currently, no insiders of the Company plan to sell Shares under the NCIB. However, if personal circumstances change, they may opt to sell through market channels. All transactions will be conducted in a manner that benefits all stakeholders involved equally.
Previous Normal Course Issuer Bid Insights
Calian’s previous normal course issuer bid, which is nearing its expiration, allowed the Company to repurchase up to 1,044,012 Shares. So far, 110,720 Shares have been repurchased at an average price of just over $50 per Share, showcasing the Company’s proactive approach to capital management.
About Calian
Calian is committed to helping individuals achieve their goals through effective communication, education, and healthier living. For 40 years, they have upheld values such as customer commitment, integrity, innovation, respect, and teamwork. Based in Ottawa, Calian operates throughout North America and internationally, delivering innovative solutions in healthcare, cybersecurity, and more. Explore their range of services to see how they contribute to progress in the world.
Contact Information
For media inquiries, please contact: media@calian.com
For investor relations, reach out to: ir@calian.com
Frequently Asked Questions
What is the purpose of the NCIB announced by Calian Group Ltd.?
The NCIB allows Calian to repurchase its Shares, reflecting their belief that these Shares 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 duration of the NCIB.
What impact does the NCIB have on existing shareholders?
The NCIB is expected to boost the equity interest of existing shareholders by reducing the number of outstanding Shares 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 solid financial position.
How does the automatic share purchase plan (ASPP) work?
The ASPP allows the Company to purchase Shares during periods when it is typically restricted from doing so, providing flexibility in executing the buyback strategy.
