LANGLEY,
BC, Dec. 28, 2023 /CNW/ - ADENTRA Inc.
("ADENTRA" or the "Company") (TSX: ADEN) is
pleased to announce that the Toronto Stock Exchange (the
"TSX") has accepted a notice filed by the Company of its
intention to make a Normal Course Issuer Bid (the "Bid") to
be transacted through the facilities of the TSX or any alternative
Canadian trading system.
The notice provides that the Company may, during the period
commencing on January 2, 2024 and
ending on December 31, 2024, purchase
up to 1,702,309 of its common shares ("Shares") in
total, being approximately 10% of the Company's Public Float (as
that term is defined in the policies of the TSX) based on
22,345,708 issued and outstanding Shares as at December 19, 2023. The price which the Company
will pay for any such Shares will be the prevailing market price at
the time of acquisition. The actual number of Shares which may be
purchased pursuant to the Bid will be determined by management of
the Company. All Shares will be purchased for cancellation.
Pursuant to TSX policies, as of December
19, 2023, the Company's public float consists of 17,023,097
Shares. Under the Bid, the maximum number of Shares the Company may
purchase during any trading day will be 7,151, which represents 25%
of the average daily trading volume of 28,607 Shares on
the TSX for the period from June 1,
2023 to November 30, 2023. In
addition, the Company may make, once per week, a block purchase of
Shares not directly or indirectly owned by insiders of the Company,
in accordance with TSX policies.
The Board of Directors believes that during the course of the
Bid the market price of the Shares may not, from time to time,
reflect the underlying value of the Company. As a result, depending
upon future price movements and other factors, the Board of
Directors believes that the purchase of the Shares may be in the
best interests of the Company and its shareholders. Furthermore,
any purchases are expected to benefit all persons who continue to
hold Shares by increasing their equity interest in the Company when
the repurchased Shares are cancelled.
Under the Company's current normal course issuer bid that
commenced January 3, 2023 and
terminates December 31, 2023, the
Company was authorized to purchase up to 1,735,401 Shares. Under
that bid, the Company has purchased 421,811 Shares through open
market purchases on the TSX at a volume weighted average price
of $29.61 per Share during the period
from January 3, 2023 to December 19, 2023.
In connection with the Bid, the Company will enter into an
automatic share purchase plan ("ASPP") with a designated
broker. The ASPP is intended to allow for the purchase of
Shares under the Bid at times when the Company would ordinarily not
be permitted to purchase Shares due to regulatory restrictions and
customary self-imposed blackout periods. Pursuant to the ASPP,
before entering into a blackout period, the Company may, but is not
required to, instruct the designated broker to make purchases under
the Bid in accordance with the terms of the ASPP. Such purchases
will be determined by the designated broker at its sole discretion
based on purchasing parameters set by the Company in accordance
with the rules of the TSX and any applicable alternative
Canadian trading system, applicable securities laws and the terms
of the ASPP. The ASPP will be in effect for the term of the
Bid.
About ADENTRA
ADENTRA is one of North
America's largest distributors of architectural building
products to the residential, repair and remodel, and commercial
construction markets. The Company currently operates a network of
86 facilities in the United States
and Canada. ADENTRA's common
shares are listed on the Toronto Stock Exchange under the symbol
ADEN.
SOURCE ADENTRA Inc.