Economic Investment Trust Limited Moves Forward with Share Buyback Plan
Renewal of Normal Course Issuer Bid by Economic Investment Trust Limited
Economic Investment Trust Limited (TSX: EVT) has recently made an important announcement regarding the renewal of its Normal Course Issuer Bid (NCIB). This decision has been accepted by the Toronto Stock Exchange and marks a proactive move by the company to effectively manage its shares.
Key Details of the Issuer Bid
The newly minted bid allows the company to repurchase up to 271,094 common shares over a period of 12 months, starting from the 12th of March. This is approximately 5% of the total shares outstanding, which as of late February was 5,421,897 shares. The purchases will occur at prevailing market prices, and the exact number of shares to be bought will be determined by the company’s management based on various market factors.
Understanding the Context of Share Repurchases
The average daily trading volume of these shares has been recorded at 292 during the last six months. This bid, however, stipulates that a maximum of 1,000 shares can be purchased in any given trading day. Management will consider market trends, share values, and available cash flow before executing these transactions.
Previous Issuer Bid Overview
Economic Investment Trust Limited’s prior NCIB is set to expire soon. Under this previous initiative, the company had approval to repurchase up to 271,259 shares, demonstrating its ongoing commitment to enhancing shareholder value. In fact, the company successfully bought back and canceled 3,300 shares at an average price of $155.45 per share during this period.
Why This Matters to Shareholders
The Board of Directors believes that repurchasing shares at favorable prices can be a prudent use of corporate funds. If the company’s shares do not reflect their intrinsic value, buying them back could increase the equity interest of existing shareholders, thereby benefiting them in the long run.
Company Overview
Economic Investment Trust Limited operates as a closed-end investment corporation that trades shares on the stock exchange. The company is renowned for focusing on long-term growth through investments in common equities. Its overarching goal is to achieve an above-average rate of return primarily through capital appreciation and dividend earnings. The portfolio is diversified, representing investment opportunities across the globe.
Contact for Further Information
For stakeholders and interested parties seeking additional information, they can reach out to:
Richard B. Carty
Corporate Secretary
Economic Investment Trust Limited
Telephone: (416) 947-2578
Fax: (416) 362-2592
Scott Ewert
Vice-President
Economic Investment Trust Limited
Telephone: (416) 947-2578
Fax: (416) 362-2592
Frequently Asked Questions
What is the purpose of the Normal Course Issuer Bid?
The Bid allows Economic Investment Trust Limited to repurchase its own shares to enhance shareholder value and manage the total shares outstanding effectively.
How many shares can Economic Investment Trust Limited buy back?
The company can repurchase up to 271,094 shares under the renewed Bid, approximately 5% of its outstanding shares.
What factors will influence share repurchase decisions?
Management will consider market conditions, prevailing share prices, available cash, and other financial factors before making purchases.
What happened in the previous Normal Course Issuer Bid?
In the previous Bid, the company repurchased and canceled 3,300 shares at an average price of $155.45 each.
Who can I contact for more information about the company?
For inquiries, stakeholders can contact Richard B. Carty or Scott Ewert via the provided telephone numbers and fax.
About The Author
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