The North West Company Inc. (the "Company" or "North West")
announced today that the Toronto Stock Exchange (the "TSX") has
accepted notice of the Company's intention to make a normal course
issuer bid ("NCIB") for a portion of its common voting shares and
variable voting shares (the "Shares") as appropriate opportunities
arise from time to time. The board of directors of the Company
believes that the purchase by the Company of a portion of its
outstanding Shares may from time to time be an appropriate use of
available resources and in the best interests of the Company.
Pursuant to the NCIB notice filed with the TSX,
the Company may acquire up to a maximum of 4,773,508 of its Shares,
or approximately 10% of its public float as of October 31, 2021 for
cancellation over the next 12 months. As of October 31, 2021, the
Company had 48,055,854 issued and outstanding Shares.
Purchases under the NCIB will be made through
the facilities of the TSX or through Canadian alternative trading
systems and in accordance with applicable regulatory requirements
at a price per Share equal to the market price at the time of
acquisition. The number of Shares that can be purchased pursuant to
the NCIB is subject to a current daily maximum of 27,057 Shares
(which is equal to 25% of 108,228, being the average daily trading
volume of the Shares during the last six calendar months), subject
to the Company's ability to make one block purchase of Shares per
calendar week that exceeds such limits.
In connection with the NCIB, the Company has
established an automatic securities purchase plan (the “Plan”) with
its designated broker to facilitate the purchase of Shares under
the NCIB at times when the Company would ordinarily not be
permitted to purchase its Shares due to regulatory restrictions or
self-imposed blackout periods. Under the Plan, before entering a
self-imposed blackout period, North West may, but is not required
to, ask the designated broker to make purchases under the NCIB
within specified parameters. Outside of the pre-determined blackout
periods, Shares may be purchased under the NCIB based on the
discretion of the Company’s management, in compliance with TSX
rules and applicable securities laws. The Company may elect to
suspend or discontinue its NCIB at any time. The automatic
securities purchase plan will be effective as of November 12,
2021.
All Shares purchased under the NCIB will be
cancelled upon their purchase. The Company intends to fund the
purchases out of its available resources. The Company may begin to
purchase Shares on November 12, 2021 and the NCIB will terminate on
November 11, 2022, or such earlier date as the Company completes
its purchases pursuant to the NCIB or provides notice of
termination.
The NCIB follows the Company’s normal course
issuer bid for the 12 months ended November 11, 2021 (the “2021
NCIB”). Under the 2021 NCIB, the Company had obtained approval to
purchase up to 4,807,437 Shares. The 2021 NCIB began on November
12, 2020 and will end on November 11, 2021. Within the past 12
months, under the 2021 NCIB the Company repurchased through the
facilities of the TSX and alternative Canadian trading systems, and
cancelled, 814,788 Shares at a weighted average purchase price of
$34.43 per Share as at October 31, 2021.
Notice to
Readers
Certain forward-looking statements are made in
this news release, within the meaning of applicable securities
laws. These statements reflect North West's current expectations
and are based on information currently available to management. The
words may, will, should, believe, expect, plan, anticipate, intend,
estimate, predict, potential, continue, or the negative of these
terms, identify forward-looking matters. These statements speak
only as of the date of this press release. The actual results could
differ materially from those anticipated in these forward-looking
statements.
Reliance should not be placed on forward-looking
statements because they involve known and unknown risks,
uncertainties and other factors, which may cause the actual
results, performance, capital expenditures or achievements of North
West to differ materially from anticipated future results,
performance, capital expenditures or achievement expressed or
implied by such forward-looking statements, including the Company’s
intentions regarding a normal course issuer bid, the anticipated
impact of the COVID-19 pandemic on the Company's operations and the
Company's related business continuity plans. Factors that could
cause actual results to differ materially from those set forth in
the forward-looking statements include, but are not limited to,
business performance, fluctuations in interest rates and currency
values, legislative and regulatory developments, legal
developments, the occurrence of weather-related and other natural
catastrophes, changes in tax laws, and those risks and
uncertainties detailed in the section entitled Risk Factors in
North West's Management's Discussion and Analysis and Annual
Information Form, both for the year-ended
January 31, 2021. The preceding list is not an exhaustive
list of possible factors. These and other factors should be
considered carefully and readers are cautioned not to place undue
reliance on these forward-looking statements. North West undertakes
no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, other than as required by applicable law.
Company
Profile
The North West Company Inc., through its
subsidiaries, is a leading retailer of food and everyday products
and services to rural communities and urban neighbourhoods in
Canada, Alaska, the South Pacific and the Caribbean. North West
operates 213 stores under the trading names Northern, NorthMart,
Giant Tiger, Alaska Commercial Company, Cost-U-Less and RiteWay
Food Markets and has annualized sales of approximately CDN$2.0
billion.
The common shares of North West
trade on the Toronto Stock Exchange under the symbol
NWC.
For more information
contact:
Dan McConnell, President and Chief Executive
Officer, The North West Company Inc.Phone 204-934-1482; fax
204-934-1317; email dmcconnell@northwest.ca
John King, Executive Vice-President and Chief
Financial Officer, The North West Company Inc.Phone 204-934-1397;
fax 204-934-1317; email jking@northwest.ca
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