Chorus Aviation Inc. („Chorus”) (TSX: CHR.B CHR.A CHR.DB) today announced that the Toronto Stock Exchange (the „TSX”) has accepted its notice to make a normal course issuer bid („NCIB”) to purchase for cancellation up to a maximum of 12,168,157 of its Class A Variable Voting shares and/or Class B Voting shares (collectively, the „Shares”), representing 10% of the public float of the Shares.
The directors and management of Chorus believe that the market price of the Shares during the period of the bid may be such that the purchase of Shares by Chorus for cancellation would be in the best interests of Chorus and an appropriate use of corporate funds in light of potential benefits to remaining shareholders.
As of March 24, 2014, Chorus had 122,542,026 Shares issued and outstanding, of which 121,681,572 Shares constitute the total public float of the Shares. Purchases made pursuant to the bid will be made in the open market through the facilities of the TSX and/or alternative trading systems in accordance with the requirements of the TSX. Chorus is authorized to commence the bid on or about March 31, 2014 and have it remain in effect until March 30, 2015, or such earlier date as Chorus may complete its purchases pursuant to a Notice of Intention filed with the TSX. There can be no assurances as to how many Shares, if any, will be acquired by Chorus pursuant to this NCIB. Shares purchased by Chorus pursuant to the bid will be cancelled. On any trading day, Chorus will not purchase more than 83,346 Shares, except where such purchases are made in accordance with the block purchase exemptions under the TSX rules.
In connection with the NCIB, Chorus has established an automatic securities purchase plan (the „Plan”) for the purchase of Shares. The Plan was established to provide standard instructions regarding how Shares are to be purchased under the NCIB. Accordingly, Chorus' designated broker may purchase Shares under the Plan on any trading day during the NCIB during pre-determined trading blackout periods. The Plan will commence immediately and terminate when the NCIB terminates, unless terminated earlier in accordance with its terms. Outside of these pre-determined blackout periods, Shares will be repurchased in accordance with management’s discretion, subject to applicable law. Chorus may vary, suspend or terminate the Plan only if it does not have material non-public information and the decision to vary, suspend or terminate the Plan is not taken during a pre-determined trading blackout period. The Plan constitutes an „automatic plan” for purposes of applicable Canadian securities legislation and has been reviewed by the TSX.
Under its previously approved NCIB program that will expire on March 17, 2014, as of February 28, 2014 Chorus had repurchased 1,871,800 Shares at an aggregate cost of approximately $4 million, representing a weighted average repurchase price of $2.13 per common share. All of the repurchased Shares were subsequently cancelled.
Source / Author: Chorus Aviation Inc.