Flow Capital Launches Initiative for Share Repurchase Plan

Flow Capital Unveils Share Repurchase Program

TORONTO, ON -- Flow Capital Corp. (TSXV: FW), often referred to as Flow Capital, has made an exciting announcement regarding its strategy for enhancing shareholder value. The company intends to initiate a normal course issuer bid (NCIB) on the TSX Venture Exchange, allowing the repurchase and cancellation of up to 2,289,547 common shares. This initiative represents approximately 10% of the public float of the company's shares held by non-insiders.

Details of the Share Repurchase Plan

The NCIB is set to commence shortly, aiming to terminate at the earlier of the purchase of the shares, a notice of termination, or the specified end date. This plan reflects Flow Capital's evaluation of its market position and the perceived undervaluation of its shares in the current marketplace.

Purpose of the Repurchase

The management at Flow Capital recognizes that at times, market conditions may not fully represent the intrinsic value and promising outlook of the company. Hence, repurchasing shares is seen as a prudent strategy to utilize financial resources effectively and bolster shareholder equity.

Broker Engagement and Purchase Methodology

Flow Capital has appointed Ventum Financial Corp. as its designated broker for the NCIB. The shares will be acquired on the open market, with all purchases processed using existing working capital. The transactions will be done at current market prices, along with any applicable brokerage fees. Following the completion of each purchase, the shares will be cancelled, effectively reducing the total share count in circulation.

Automatic Purchase Plan in Action

In conjunction with the NCIB, Flow Capital has established an automatic purchase plan (APP) that stipulates clear guidelines for share purchases. This plan allows the broker to execute transactions autonomously while adhering to conditions outlined by the company and in compliance with securities regulations and exchange policies.

Commitment from Company Leadership

To maintain transparency, Flow Capital emphasizes that none of its current directors, officers, or insiders plan to sell any of their holdings during the NCIB period. Recently, the company completed a previous NCIB in which it successfully purchased 1,579,000 common shares, demonstrating its commitment to its shareholders.

What is Flow Capital?

Flow Capital Corp. is a growth-oriented venture debt lender committed to assisting high-growth businesses in various sectors. With a focus on companies in the US, UK, and Canada since its launch, Flow Capital provides crucial funding through debt solutions, enabling businesses to expand without the drawbacks often associated with equity financing or traditional bank loans. Their primary focus is on revenue-generating companies that are VC-backed or founder-owned seeking financial support ranging from $2 million to $10 million.

Contact Information

For more inquiries about the NCIB or other initiatives, interested parties can reach out to:

Flow Capital Corp.

Michael Denny
Chief Financial Officer
michael@flowcap.com

Address: 47 Colborne Street, Suite 303, Toronto, Ontario M5E 1P8

Frequently Asked Questions

What is the main purpose of Flow Capital's NCIB?

The primary aim of the normal course issuer bid is to repurchase common shares that may not reflect the company's true value in the market, thereby enhancing shareholder value.

Who is the broker handling the repurchases?

Ventum Financial Corp. has been engaged as the designated broker to manage the share repurchases under the NCIB.

What happens to the shares repurchased by Flow Capital?

All shares acquired through the NCIB will be cancelled, reducing the overall number of shares outstanding.

Will company insiders sell shares during the NCIB?

No, Flow Capital's directors and insiders have indicated they do not intend to sell any shares during the NCIB period.

How is Flow Capital supporting growth-oriented companies?

Flow Capital provides flexible debt financing to high-growth businesses, assisting them in expanding their operations without the dilution that equity financing typically entails.

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