ECN Capital Moves Forward with Share Buyback Initiatives
ECN Capital's Strategic Buyback Plans Approved
Recently, ECN Capital Corp. (TSX: ECN) received the green light from the Toronto Stock Exchange (TSX) to initiate normal course issuer bids for its common shares and Series C preferred shares. This strategic move reflects the company’s intent to manage its share structure effectively while also optimizing its cash resources.
Understanding the Normal Course Issuer Bid
The normal course issuer bid allows ECN Capital to repurchase a maximum of 15,472,849 common shares and 371,240 Series C preferred shares. These numbers correlate to approximately 10% of the respective public floats, thereby complying with TSX regulations. This bidding process will commence on September 23, 2024, and conclude no later than September 22, 2025, or until the prescribed buyback amounts have been purchased.
Limitations on Purchases
During the six months leading up to the bid approval, the average trading volumes on the TSX were 406,877 for common shares and 1,642 for preferred shares. Consequently, the daily purchase limits have been set to 101,719 common shares and 1,000 Series C preferred shares, with any additional purchases adhering to the prescribed regulations of the TSX.
Funding and Cancellation of Shares
ECN Capital plans to fund the buybacks using existing cash resources. Once shares are repurchased under the bids, they will be cancelled, ultimately reducing the total number of outstanding shares. This action signals confidence in the company's financial health and future prospects.
Previous Issuer Bid Considerations
Notably, in prior bids from September 2023, ECN Capital sought to repurchase 6,329,034 common shares and 371,240 Series C preferred shares. However, no acquisitions occurred on the open market throughout that timeframe, suggesting a strategic aversion to using company resources for share buybacks at that moment.
Introducing Automatic Share Purchase Plans
In conjunction with the issuer bids, ECN Capital is implementing new automatic share purchase plans in collaboration with designated brokers. These plans will allow for the repurchase of shares even during self-imposed blackout periods, enhancing flexibility and ensuring a streamlined process for executing the buybacks.
About ECN Capital Corp.
ECN Capital is an established player in providing vital business services to financial institutions and investors across North America. With managed assets totaling US$5.3 billion, ECN Capital facilitates loan management and advisory services specifically tailored to cater to their partners in the financial sector. Their core offerings range from consumer loans to commercial financing solutions, segmented into areas such as Manufactured Housing Finance and Recreational Vehicles and Marine Finance.
Contact Information
Katherine Moradiellos
561-631-8739
kmoradiellos@ecncapitalcorp.com
Frequently Asked Questions
What is the purpose of the normal course issuer bid?
The normal course issuer bid allows ECN Capital to repurchase its shares to manage its equity structure and optimize cash resources.
How many shares is ECN Capital authorized to buy back?
ECN Capital is authorized to repurchase up to 15,472,849 common shares and 371,240 preferred shares.
When does the bid period start and end?
The bid period commences on September 23, 2024, and concludes by September 22, 2025, or once the authorized purchases are completed.
What is the daily purchase limit for shares under the bid?
The daily purchase limit is set to 101,719 common shares and 1,000 Series C preferred shares unless exceptions apply.
Who should I contact for more information about ECN Capital?
For inquiries, you can contact Katherine Moradiellos at 561-631-8739 or via email at kmoradiellos@ecncapitalcorp.com.
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