Urbana Corporation Announces Plans for Share Buyback
Urbana Corporation (“Urbana”) (TSX & CSE: URB & URB.A) has made an important announcement regarding its strategy to enhance shareholder value. The Toronto Stock Exchange (TSX) has accepted Urbana's notice to initiate a normal course issuer bid for the purchase of up to 3,107,305 non-voting Class A shares. This represents approximately 10% of the public float as outlined in their bid notice.
Details of the Buyback Program
The buyback program is set to begin shortly, with purchases commencing on September 9, 2025. The bid will remain active until September 8, 2026, unless terminated earlier by Urbana. The purchases will take place on the open market utilizing the platforms of the TSX and the Canadian Securities Exchange, as well as other trading systems permitted by securities regulators.
Execution of the Bid
Caldwell Securities Ltd. will execute the buyback on behalf of Urbana. It is noteworthy that the price paid for the shares will correspond to the market price at the time of acquisition. Any Class A Shares bought back will be canceled afterwards, effectively reducing the number of outstanding shares and potentially increasing the value of the remaining shares.
Daily Purchase Limits
To ensure a careful approach to the buyback, Urbana has set a daily purchase limit of 2,584 Class A Shares, which reflects 25% of the average daily trading volume over the last six months. Despite this limit, the company is allowed to make one block purchase per week if it meets specific criteria outlined by the exchange.
Previous Share Buyback Activities
In a prior initiative, Urbana received TSX approval to purchase up to 3,107,404 Class A Shares, yet as of late August, no shares had been bought under that bid. The total issued and outstanding shares at that time were 31,395,100, with a public float of 31,073,058 shares.
Rationale Behind the Buyback
Urbana believes that there may be times when the market price for its Class A Shares is particularly attractive. By conducting this buyback, Urbana aims to make a judicious use of corporate funds while also potentially benefiting its loyal shareholders.
Contact Information
For further inquiries regarding the share buyback program, investors can reach out to Elizabeth Naumovski in Investor Relations at (416) 595-9106 or via email at enaumovski@urbanacorp.com.
Frequently Asked Questions
What is the purpose of Urbana’s share buyback program?
The buyback program is designed to enhance shareholder value by repurchasing shares when the market price is deemed attractive.
When does the buyback program start and end?
The buyback will begin on September 9, 2025, and will continue until September 8, 2026, unless it is terminated earlier.
How many shares can Urbana buy under the daily limit?
Urbana has set a daily limit of 2,584 Class A Shares for purchase, which is based on 25% of the average daily trading volume.
Who is executing the share buyback for Urbana?
The buyback program will be executed by Caldwell Securities Ltd. on behalf of Urbana Corporation.
What happens to the shares purchased in this buyback?
All Class A Shares that are purchased under this buyback will be canceled, reducing the total number of outstanding shares.
