Stingray Group Strengthens Shareholder Value Through NCIB
Stingray Group Reinforces Commitment to Shareholders
MONTREAL — Stingray Group Inc. (TSX: RAY.A; RAY.B), a prominent player in the distribution of music and video content, proudly announces the Toronto Stock Exchange’s approval of a renewal for its normal course issuer bid (NCIB). This initiative permits the company to repurchase up to 3,710,428 subordinate voting shares and variable subordinate voting shares, which comprise nearly 10% of the current public float.
Understanding the Normal Course Issuer Bid
Recently, the average net daily trading volume preceding the bid reported at 23,675 subordinate voting shares. According to TSX regulations, Stingray is allowed to purchase up to 5,918 subordinate shares on any given trading day, equating to 25% of that average volume. This strategic approach reflects Stingray’s commitment to leveraging its funds wisely while maximizing shareholder value.
Investing in Future Growth
By engaging in the repurchase of shares under this NCIB, Stingray aims to enhance its shareholder value significantly. The reduction in the overall number of shares circulating in the market facilitates an increase in the proportionate interest for existing shareholders, creating a more advantageous position for everyone involved. This approach highlights Stingray’s strategic focus on enhancing growth potential and maximizing returns for its investors.
Operational Framework of the NCIB
The repurchase of subordinate shares will occur through open market transactions on the TSX and via alternative Canadian trading systems. The plan is set to be executed over twelve months, beginning shortly and concluding no later than a year from its initiation. The exact number of shares acquired, alongside the timing and purchasing price, will be determined by the management, considering the prevailing market conditions.
Automation for Enhanced Efficiency
Stingray has also implemented an automatic securities purchase plan with a designated broker. This plan is crucial as it permits purchases during periods when buying might typically be restricted due to regulatory limitations. This proactive measure ensures that the company can continue to support shareholders by managing share repurchases effectively, even during blackout periods.
Impact of Previous Buybacks
As a point of reference, up until mid-September, Stingray successfully repurchased 1,159,300 subordinate shares under its previous NCIB, which is set to expire soon. This effort was critical in maintaining a healthy financial standing and supporting the company’s overarching goals. The weighted average price for these repurchased shares stood at $8.7156 each, marking a significant investment in the company’s future.
About Stingray Group
Stingray Group Inc., operating on the TSX under the tickers RAY.A and RAY.B, is a leading global entity in the fields of music, media, and technology. With a diverse portfolio that includes TV broadcasting, radio, streaming, and digital advertising services, Stingray remains at the forefront of innovation. The company serves enterprise brands worldwide with a comprehensive suite of audio and video channel offerings, alongside a notable presence in digital advertising and commercial solutions.
Reaching Global Audiences
With approximately 1,000 employees globally, Stingray successfully reaches an audience of 540 million consumers across 160 countries. This extensive reach not only highlights the brand's international footing but also solidifies its position as a significant player in the media and entertainment industry.
Frequently Asked Questions
What is the purpose of Stingray’s normal course issuer bid?
The NCIB allows Stingray to repurchase shares to enhance shareholder value by reducing the number of shares available in circulation.
How many shares can Stingray repurchase under the current NCIB?
Stingray is authorized to buy back up to 3,710,428 subordinate shares under the current renewal.
What impact do share repurchases have on existing shareholders?
Share repurchases increase the proportionate interest of existing shareholders by reducing the total number of shares outstanding.
When does the new NCIB period begin?
The new NCIB period commences at the end of September and will last for twelve months until the following September.
How does Stingray plan to execute its share repurchase strategy?
Purchases will be made on the open market through TSX and other trading platforms, dictated by market conditions and internal management strategies.
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