CALGARY, May 30, 2016 /CNW/ - Mainstreet Equity Corp. ("Mainstreet" or the "Corporation") (TSX:MEQ) today announced that the Toronto Stock Exchange ("TSX") has accepted its notice of intention to make a normal course issuer bid to purchase outstanding common shares of the Corporation ("Shares") on the open market in accordance with the rules of the TSX.
The Corporation is authorized to purchase up to 487,890 Shares under the normal course issuer bid, representing approximately 10% of its public float of issued and outstanding Shares, as of May 24, 2016. As of that date, there were 8,932,915 Shares issued and outstanding. The average daily trading volume of the Shares for the past six months ended April 30, 2016, calculated in accordance with the rules of the TSX, was 8,290 and Mainstreet is subject to a daily repurchase limit of 25% of such volume, being 2,072 Shares. Mainstreet intends to commence the normal course issuer bid on June 1, 2016 and terminate the bid on May 31, 2017 or such earlier time as the bid is completed or terminated at the option of Mainstreet.
All shares purchased under this bid will be purchased in the open market through the facilities of the TSX at the prevailing market price at the time of such transaction. Shares acquired under the bid will be cancelled and returned to treasury.
Mainstreet intends to acquire Common Shares from time to time in amounts and prices which its management believes are favourable and consistent with prudent economic and financial considerations. During the period between April 21, 2015 and March 1, 2016, Mainstreet repurchased and cancelled 221,236 Shares under its previous normal course issuer bid at a volume weighted average price of $33.72 per Share. In addition, on April 22, 2106 the Corporation repurchased and cancelled 1,200,000 Shares at a purchase price of $36.00 per Share pursuant to a substantial issuer bid.
Mainstreet's Board of Directors believes that, from time to time, the market price of its Shares may not reflect their underlying value. At such times, the Board of Directors believe that the purchase of Shares for cancellation pursuant to the normal course issuer bid is in the best interests of Mainstreet and its shareholders, as the cancellation of the Shares will increase the value of the remaining Shares.
Certain statements contained herein constitute "forward-looking statements" as such term is used in applicable Canadian securities laws. These statements relate to, among other things, Mainstreet's intentions to acquire Shares pursuant to the normal course issuer bid, the timing of such bid and that the repurchase and cancellation of the Shares pursuant to the bid is in the best interests of the shareholders and that it will increase the value of the remaining Shares. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions of future events or performance (often, but not always, using such words or phrases as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as forward-looking statements.
Such forward-looking statements are not guarantees of future events or performance and by their nature involve known and unknown risks, uncertainties and other factors, including those risks described in the Corporation's Annual Information Form under the heading "Risk Factors" and the failure to realize anticipated benefits of the normal course issuer bid, that may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, other factors may cause actions, events or results to be different than anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements contained herein.
Forward-looking statements are based on management's beliefs, estimates and opinions on the date the statements are made, and the Corporation undertakes no obligation to update forward-looking statements if these beliefs, estimates or opinions should change, except as required by applicable securities laws or as otherwise described therein.
Certain information set out herein may be considered as "financial outlook" within the meaning of applicable securities laws. The purpose of this financial outlook is to provide readers with disclosure regarding the Corporation's reasonable expectations as to the anticipated results of its proposed business activities for the periods indicated. Readers are cautioned that the financial outlook may not be appropriate for other purposes.
SOURCE Mainstreet Equity Corporation