Flow Capital's Buyback Announcement
Flow Capital Corp. (TSXV: FW) has unveiled an ambitious plan that reflects its commitment to boosting shareholder value. This announcement regarding a normal course issuer bid (NCIB) is part of their strategy to acquire up to 2,115,988 common shares. This move represents about 10% of the company’s public float and is aimed at maximizing returns for its investors.
Details of the Normal Course Issuer Bid
The normal course issuer bid is set to commence soon, demonstrating Flow Capital's proactive approach in managing its capital structure. The intention is to repurchase these shares from the market, which the company believes will enhance its intrinsic value.
The NCIB will officially begin on December 2 and is scheduled to conclude no later than December 1 of the following year unless the company reaches its purchase limit or decides to terminate earlier. This timeline emphasizes the company's tactical maneuver to respond to market conditions efficiently.
Rationale Behind the Buyback
Flow Capital sees the current market prices of its shares as undervalued compared to the underlying assets and future growth prospects. By engaging in stock buybacks, the company aims not only to utilize its financial resources wisely but also to signal confidence in its long-term strategy. The aim is to uplift shareholder perceptions and deliver better value.
Broker Engagement and Purchase Plan
For the execution of the buyback, Flow Capital has enlisted Ventum Financial Corp. as its broker. This partnership is pivotal for ensuring that the purchase plan aligns with market regulations and operates smoothly. The acquisition of shares will be facilitated through the TSX Venture Exchange.
Payment for the stock will be sourced from the company’s working capital and will reflect the market price at the time of purchase, along with standard brokerage fees. Every share repurchased will be canceled, reducing the total number of outstanding shares and potentially leading to an increase in Earnings Per Share (EPS).
Automated Purchase Plan
Additionally, an automatic purchase plan has been established with the broker to streamline the process. This plan outlines the parameters for executing the purchases, allowing the broker to make decisions based on the established guidelines, which aim to comply with all relevant regulations.
History of Share Purchases
Reflecting on previous buyback efforts, the company successfully repurchased 1,226,500 shares at an average price of $0.7372 each under its prior NCIB. This proactive decision has benefitted Flow Capital, showcasing its effective strategic planning and financial management.
About Flow Capital
Flow Capital Corp. is recognized as a leader in flexible growth and alternative capital solutions, aiming to empower high-growth companies across various industries. Since its establishment, the organization has focused on providing essential financing to many businesses, particularly those that are revenue-generating and backed by venture capital. Flow Capital's mission is to support these enterprises in scaling operations while retaining control for founders.
The Company operates with a keen awareness of the competitive landscape in the U.S., the UK, and Canada, contributing to its clients' journey towards accelerated growth.
Contact Information
If you would like to reach out for further information, please contact:
Michael Denny
Chief Financial Officer
michael@flowcap.com
47 Colborne Street, Suite 303,
Toronto, Ontario M5E 1P8
Frequently Asked Questions
What is the purpose of the NCIB announced by Flow Capital?
The NCIB aims to repurchase common shares to enhance shareholder value and reflect the company's commitment to its investors.
Who is the broker handling Flow Capital’s buyback?
Ventum Financial Corp. has been engaged as the broker to facilitate the NCIB process.
How many shares does Flow Capital plan to repurchase?
The company intends to repurchase up to 2,115,988 common shares under this buyback plan.
When does the NCIB commence?
The NCIB is set to start on December 2 and will continue for one year or until the share purchase limit is reached.
What was the average price at which shares were repurchased previously?
In its previous buyback, Flow Capital acquired shares at an average price of $0.7372 each, totaling 1,226,500 shares.
