Stack Capital Group Inc. Launches New Share Buyback Initiative

Stack Capital Group Inc. Announces Normal Course Issuer Bid

Stack Capital Group Inc. (TSX:STCK) has recently made waves with an announcement regarding a normal course issuer bid (NCIB) intended for its outstanding common shares. The management team has expressed strong confidence that the current share price does not accurately reflect the value of the company, particularly when considered against their recently reported Book Value per Share, which stands at a commendable $11.05.

Implementation of the Normal Course Issuer Bid

The bid is set to take place over a 12-month period starting on November 18, 2024, and expiring no later than November 17, 2025. Under this initiative, Stack Capital is targeting the purchase of up to 531,000 common shares, a figure that represents 5.0% of the common shares currently issued and outstanding as of November 11, 2024. The company plans to procure shares through various trading platforms, primarily the TSX and alternative Canadian Trading Systems, and will pay market price during the acquisition.

Daily Purchase Guidelines and Management Decisions

In an effort to maintain steady purchasing activity without disrupting market dynamics, Stack Capital has set a limit on daily buybacks to about 1,153 shares, barring large block transactions. The actual number of shares acquired during this period will be managed by the senior management team, ensuring that purchases align with overall corporate strategy and market conditions.

Rationale Behind Share Buybacks

Stack Capital's management aims to create value for shareholders and believes that repurchasing shares is a prudent use of the company’s resources when the market conditions present an appealing opportunity. The flexibility to purchase shares not only demonstrates confidence in the company’s long-term potential but also aims to provide a return on investment for shareholders.

Automatic Share Purchase Plan as a Strategic Tool

To complement the NCIB, Stack Capital has established an automatic share purchase plan (ASPP) with a designated broker. This plan is critical, as it allows the company to continue buying back shares even during periods when normal trading might be restricted due to regulatory limitations or self-imposed blackout periods. The timing and volume of purchases during these restricted times will be solely at the broker’s discretion, adhering to the guidelines set by Stack Capital and regulatory bodies.

Performance of Previous NCIB

Reflecting on past buyback efforts, Stack Capital launched a previous NCIB, which allowed for the purchase of up to 449,000 common shares from November 17, 2023, to November 16, 2024. Up until November 11, 2024, they procured 59,400 shares at a weighted average price of $8.73. Such proactive measures illustrate the company’s commitment to shareholder value and its responsiveness to market conditions.

About Stack Capital Group Inc.

Stack Capital is not just another investment holding company; it strives to empower its shareholders by investing in high-growth potential private businesses. This innovative approach enables stockholders to have an exposure to a diversified portfolio of private investments while also availing liquidity through the public offering of Common Shares and Warrants on the TSX. The company’s focus is on maximizing long-term returns by concentrating on sectors that may not be widely available to average Canadian investors.

Contact Information

For additional inquiries, Stack Capital Group Inc. can be reached through:

Brian Viveiros
VP, Corporate Development and Investor Relations
647.280.3307
brian@stackcapitalgroup.com

Frequently Asked Questions

What is the purpose of Stack Capital's normal course issuer bid?

The NCIB aims to repurchase outstanding common shares, enhancing shareholder value by reflecting the fair market price over time.

How many shares is Stack Capital aiming to acquire during the NCIB?

Stack Capital plans to purchase up to 531,000 common shares, representing 5.0% of issued shares.

What advantages does the automatic share purchase plan (ASPP) offer?

The ASPP allows purchases during blackout periods, ensuring continuous buyback activity according to the company’s strategy.

When does the current NCIB start and end?

The NCIB commences on November 18, 2024, and concludes no later than November 17, 2025.

How did Stack Capital perform in their previous NCIB?

In their previous NCIB, Stack Capital successfully acquired 59,400 shares at a weighted average price of $8.73 before its expiration.

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