LANGLEY,
BC, Dec. 29, 2022 /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 3, 2023 and
ending on December 31, 2023, purchase
up to 1,735,401 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
22,657,173 issued and outstanding Shares as at December 20, 2022. 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, the maximum number of Shares that may
be purchased in one day pursuant to the Bid will be 11,246,
representing 25% of the average daily trading volume of the Shares
on the TSX. 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 December 31, 2021 and
terminates December 30, 2022, the
Company was authorized to purchase up to 1,855,938 Shares.
Under that bid, the Company has purchased 1,201,828 Shares
through open market purchases at a volume weighted average price of
$28.72 per Share during the period
from December 31, 2021 to
December 20, 2022.
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 products to
fabricators, home centers, and professional dealers servicing the
new residential, repair and remodel, and commercial construction
end markets. The Company currently operates a network in
North America of 86 facilities in
the United States and
Canada. ADENTRA's common shares are listed on the Toronto
Stock Exchange under the symbol "ADEN".
Website: www.ADENTRAgroup.com
SOURCE ADENTRA Inc.