DIRTT Environmental Solutions Launches NCIB for Debentures
DIRTT Environmental Solutions Announces Normal Course Issuer Bid
DIRTT Environmental Solutions Ltd. (TSX: DRT; OTC: DRTTF) has made a significant announcement regarding its financial strategy. The company, a leader in industrialized construction, has received acceptance from the Toronto Stock Exchange (TSX) for its normal course issuer bid (NCIB) aimed at purchasing its 6.00% convertible unsecured subordinated debentures due January 31, 2026, and 6.25% convertible unsecured subordinated debentures due December 31, 2026.
Details of the Normal Course Issuer Bid
The NCIB is set to commence shortly and is designed to allow DIRTT to acquire a specified amount of its outstanding debentures. Under this program, DIRTT plans to repurchase up to C$1,664,200 in principal amount of the January Debentures, and C$1,558,700 in principal amount of the December Debentures. This represents 10% of the public float of each type of debenture, with the total outstanding amount being C$16,642,000 for January Debentures and C$15,587,000 for December Debentures as of a recent date.
Daily Purchase Limitations
The company is aware of the regulations governing purchase limits. DIRTT will ensure that no more than C$111,507 principal amount of the January Debentures or C$416,071 principal amount of the December Debentures is purchased on any trading day. The maximum daily purchases represent approximately 25% of the average daily trading volume calculated over the previous six months.
Market Impact and Strategic Flexibility
The initiation of the NCIB underscores DIRTT's commitment to maintaining strategic flexibility with its capital allocation. The purchases will be made via open market transactions, with any repurchased debentures being immediately cancelled post-acquisition. This decision provides DIRTT with the opportunity to manage its capital effectively while responding to favorable market conditions.
Previous Debenture Repurchases
DIRTT has a track record of proactive financial maneuvers. In its most recent noteworthy transaction, completed earlier in the year, DIRTT repurchased substantial amounts of its debentures, demonstrating its ongoing commitment to shareholder value. Specifically, in a previous issuer bid, DIRTT repurchased C$4,693,000 of January Debentures and C$5,775,000 of December Debentures for cancellation.
Seeking Approval for Repurchase Plans
In association with the NCIB, DIRTT is also expected to implement an issuer repurchase plan agreement (IRPA) and an automatic repurchase plan agreement (ARPP). These plans aim to facilitate strategic purchasing of the debentures, especially during periods where normal trading restrictions may inhibit their ability to do so.
About DIRTT Environmental Solutions
Headquartered in Calgary, DIRTT Environmental Solutions is a frontrunner in the field of industrialized construction. Their innovative system combines physical products and digital tools, enabling organizations across various sectors, including healthcare, education, and public spaces, to construct customized interior environments. DIRTT’s adaptable solutions provide clients with the ability to easily reconfigure their spaces, enhancing functionality and efficiency.
Investor Relations Contact
For further inquiries regarding the normal course issuer bid or other company matters, DIRTT encourages investors and interested parties to reach out to their Investor Relations team directly via email.
Frequently Asked Questions
What is a normal course issuer bid (NCIB)?
A normal course issuer bid (NCIB) is a program that allows a company to repurchase its own shares from the open market to manage its capital structure effectively.
Why is DIRTT implementing the NCIB?
DIRTT is implementing the NCIB to provide flexibility in managing its capital and respond to market conditions that may present opportunities for repurchasing its debentures.
How much capital is DIRTT planning to allocate for the NCIB?
DIRTT has allowed for a total principal amount of up to C$1,664,200 for January Debentures and C$1,558,700 for December Debentures under the NCIB.
What are the restrictions on daily purchases under the NCIB?
The company is restricted from purchasing more than C$111,507 of January Debentures and C$416,071 of December Debentures on any given trading day.
How has DIRTT previously managed its debentures?
DIRTT has previously undertaken significant repurchase transactions, including a successful substantial issuer bid earlier in the year, showcasing its commitment to shareholder value and prudent financial management.
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