CURRENCY EXCHANGE INTERNATIONAL'S SHARE BUYBACK PROGRAM AMENDMENT
Currency Exchange International, Corp. ("CXI" or the "Company") announced a significant change to its share buyback program, which is designed to enhance shareholder value. The Toronto Stock Exchange (TSX) has accepted CXI's Notice of Intention to amend the normal course issuer bid (NCIB), effective shortly. This new amendment increases the total number of common shares that CXI can repurchase, rising from 316,646 to an impressive 377,000 shares. This change reflects 8.09% of the public float as of the last public disclosure and 10% of the public float as of the current date.
DETAILS OF THE AMENDMENT
The amendments to the NCIB include provisions that allow CXI to repurchase shares until a set termination date, ensuring flexibility in executing these buybacks. The Company initially commenced buying back shares on December 2, 2024, with plans to continue no later than December 1, 2025. To date, CXI has successfully repurchased 221,400 shares, averaging a purchase price of C$20.84.
EXECUTION OF THE SHARE BUYBACK
All share repurchases will be conducted through avenues available on the open market, utilizing the facilities of the TSX, as well as various alternative Canadian trading platforms. This method allows CXI to make informed decisions regarding the number of shares purchased, ensuring they adhere to established market rates. CXI remains committed to canceling any shares acquired during this program to reduce the overall number of outstanding shares.
REBUYING STRATEGY AND LIMITATIONS
Under TSX guidelines, CXI is authorized to repurchase a maximum of 1,000 shares on any single trading day. Additionally, the Company can execute a block purchase once weekly, targeting shares not owned directly or indirectly by any insider, aligning with TSX policies. Funding for these share acquisitions will be drawn from the Company’s available cash, demonstrating prudent financial management.
RATIONALE BEHIND THE ADJUSTMENT
The Board of Directors at CXI believes this amendment is essential as the market price of the common shares may not consistently reflect the company’s intrinsic long-term value. By executing these share repurchases, CXI aims to demonstrate its commitment to maximizing shareholder returns while responsibly managing available funds. The Board's perspective aligns with a proactive approach to strengthen CXI’s overall market position.
AMENDMENT TO THE AUTOMATIC SHARE PURCHASE PLAN
In conjunction with the changes to the NCIB, CXI has also updated its Automatic Share Purchase Plan (ASPP) to facilitate the purchase of the increased quota of shares. This seamless integration ensures that all shares repurchased under the ASPP will contribute to the overall count of shares acquired through the NCIB, reinforcing CXI’s commitment to share repurchase strategies.
ABOUT CURRENCY EXCHANGE INTERNATIONAL
Currency Exchange International, Corp. specializes in offering a broad range of foreign exchange technologies and services tailored for banks, credit unions, businesses, and consumers across multiple regions, including the United States and select international clients. The Company’s core offerings encompass currency exchange, wire transfer services, Global EFTs, and foreign check clearing. Customers benefit from CXI's advanced FX software applications via the CXIFX platform, complemented by dedicated personal relationship managers to ensure optimal service quality.
CONSUMER SERVICES
CXI also prioritizes consumer service through its retail branches and an e-commerce platform, known as OnlineFX. This accessible approach caters to both wholesale clients and individual consumers, facilitating a streamlined and user-friendly exchange experience for foreign currencies.
FREQUENTLY ASKED QUESTIONS
What is the main purpose of the amended share buyback program?
The main goal is to enhance shareholder value by repurchasing shares that may not be reflecting their long-term value in the market.
How many shares can CXI repurchase in a day?
According to TSX guidelines, CXI is allowed to repurchase a maximum of 1,000 shares on any single trading day.
What has been the average price for shares repurchased so far?
As of now, CXI has repurchased 221,400 shares at an average price of C$20.84 each.
How does the Automatic Share Purchase Plan relate to the NCIB?
All acquisitions made under the ASPP are included in the total count of shares purchased under the NCIB, ensuring streamlined management of share buybacks.
What services does Currency Exchange International provide?
CXI offers a variety of foreign exchange services, including currency exchange, wire transfers, and check clearing for both wholesale clients and consumers.
