FirstService Announces Normal Course Issuer Bid
August 16 2018 - 4:30PM
FirstService Corporation (TSX and NASDAQ: FSV) (“FirstService”)
announced today that the Toronto Stock Exchange (the “TSX”) has
accepted a notice filed by FirstService of its intention to make a
normal course issuer bid (the “NCIB”) with respect to its
outstanding subordinate voting shares (the “Subordinate Voting
Shares”).
The notice provides that FirstService may,
during the 12 month period commencing August 24, 2018 and ending no
later than August 23, 2019, purchase through the facilities of the
TSX, alternative Canadian Trading Systems or The NASDAQ Stock
Market (“NASDAQ”) up to 3,100,000 Subordinate Voting Shares in
total, being approximately 10% of the “public float” as of August
13, 2018 of such class of shares. Purchases of Subordinate Voting
Shares through NASDAQ will be made in the normal course and will
not, during the 12 month period ending August 23, 2019 exceed, in
the aggregate, 5% of the outstanding Subordinate Voting Shares as
at the commencement of the NCIB. The price which FirstService will
pay for any such shares will be the market price at the time of
acquisition. During the period of this NCIB, FirstService may make
purchases under the NCIB by means of open market transactions or
otherwise as permitted by the TSX and/or NASDAQ. The actual number
of Subordinate Voting Shares which may be purchased pursuant to the
NCIB and the timing of any such purchases will be determined by
senior management of FirstService. The average daily trading volume
from February 1 to July 31, 2018 was 45,027 Subordinate Voting
Shares. Daily purchases under the NCIB will be limited to 11,257
Subordinate Voting Shares, other than block purchases. All shares
purchased by FirstService under the NCIB will be cancelled.
As of August 13, 2018, there were 34,630,581
Subordinate Voting Shares and 1,325,694 multiple voting shares of
FirstService outstanding, and the public float of the Subordinate
Voting Shares was 31,859,185 shares.
FirstService may purchase its Subordinate Voting
Shares, from time to time, if it believes that the market price of
its Subordinate Voting Shares is attractive and that the purchase
would be an appropriate use of corporate funds and in the best
interests of FirstService. FirstService may also purchase its
Subordinate Voting Shares in order to mitigate the dilutive effect
of stock options issued under its stock option plan.
Pursuant to a previous notice of intention to
conduct a NCIB, under which FirstService sought and received
approval from the TSX to purchase up to 3,100,000 Subordinate
Voting Shares for the period of August 24, 2017 to August 23, 2018,
FirstService has purchased for cancellation, as of August 13, 2018,
211,783 Subordinate Voting Shares on the open market at an average
weighted price of US$69.08 per share. FirstService’s previous NCIB
expires on August 23, 2018.
About FirstService
CorporationFirstService Corporation is a
North American leader in the essential outsourced property services
sector, serving its customers through two industry-leading service
platforms: FirstService Residential - North
America’s largest manager of residential communities; and
FirstService Brands - one of North America’s
largest providers of essential property services delivered through
individually branded franchise systems and company-owned
operations.
FirstService generates more than US$1.7 billion
in annual revenues and has more than 19,000 employees across North
America. With significant insider ownership and an experienced
management team, FirstService has a long-term track record of
creating value and superior returns for shareholders. The
Subordinate Voting Shares of FirstService trade on the NASDAQ and
the Toronto Stock Exchange under the symbol “FSV.” More information
is available at www.firstservice.com.
Forward-Looking StatementsThis
press release contains statements that constitute “forward-looking
statements” within the meaning of applicable securities
legislation, including, but not limited to, statements relating to
future purchases of Subordinate Voting Shares under the NCIB. Much
of this information can be identified by words such as “expect to,”
“expected,” “will,” “estimated” or similar expressions suggesting
future outcomes or events. FirstService believes the expectations
reflected in such forward-looking statements are reasonable but no
assurance can be given that these expectations will prove to be
correct and such forward-looking statements should not be unduly
relied upon.
Forward-looking statements are based on current
information and expectations that involve a number of risks and
uncertainties, which could cause actual results or events to differ
materially from those anticipated. These risks include, but are not
limited to, risks associated with FirstService’s financial
condition and prospects; the stability of general economic and
market conditions; currency exchange rates and interest rates; the
availability of cash for repurchases of outstanding Subordinate
Voting Shares under the NCIB; the existence of alternative uses for
FirstService’s cash resources which may be superior to effecting
repurchases under the NCIB; compliance by third parties with their
contractual obligations; compliance with applicable laws and
regulations pertaining to the NCIB; and other risks related to
FirstService’s business, including those identified in
FirstService’s annual information form for the year ended December
31, 2017 under the heading “Risk factors” (a copy of which may be
obtained at www.sedar.com) and Annual Report on Form 40-F filed
with the United States Securities and Exchange Commission (a copy
of which may be obtained at www.sec.gov), and subsequent filings.
Forward-looking statements contained in this press release are made
as of the date hereof and are subject to change. All
forward-looking statements in this press release are qualified by
these cautionary statements. Unless otherwise required by
applicable securities laws, we do not intend, nor do we undertake
any obligation, to update or revise any forward-looking statements
contained in this press release to reflect subsequent information,
events, results or circumstances or otherwise.
COMPANY CONTACTS:D.
Scott PattersonCEO(416)
960-9500Jeremy
RakusinCFO(416)
960-9500
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