EDMONTON, AB, Dec. 20, 2021 /CNW/ - AutoCanada Inc.
("AutoCanada" or the "Company") (TSX: ACQ), a multi-location North
American automobile dealership group, announced today that the
Toronto Stock Exchange ("TSX") has accepted the Company's notice of
intention to commence a normal course issuer bid ("NCIB") to
purchase up to 1,730,321 common shares during the 12-month period
commencing December 23, 2021 and ending December 22, 2022 or such earlier date as
the Company may complete its purchases under the NCIB.
"AutoCanada's continuing strong operating and financial
performance affords the Company the ability to simultaneously
execute on our disciplined M&A strategy while repurchasing
Company shares at what the Board of Directors believes to be a
highly attractive valuation relative to the earnings of the
Company," commented AutoCanada's Executive Chairman, Paul Antony.
The Company reviews all elements of its capital allocation
strategy on an ongoing basis. The Company continues to focus on
supporting its acquisition pipeline, however, the Company believes
that the market price of the common shares may not, from time to
time, fully reflect their value and accordingly the purchase of the
common shares would be in the best interest of the Company and an
attractive and appropriate use of available funds. Currently,
AutoCanada has over $100 million in
revenue under agreement or letter of intent and the Company
continues to work towards building its pipeline to continue its
strategy of aggregating dealerships with a focus on both brand and
geographic diversification. M&A remains a key focus for
management. AutoCanada continues to take a disciplined approach to
its efforts as it continues to evolve and grow its pipeline of
dealership targets.
The number of common shares authorized for purchase under the
NCIB represents approximately 10% of AutoCanada's public float as
of December 17, 2021 (calculated in
accordance with TSX rules). As of December
17, there were 27,493,016 common shares issued and
outstanding. Purchases will be made through the facilities of the
TSX and/or alternative Canadian trading systems at prevailing
market prices in accordance with the rules and policies of the TSX
and applicable securities laws. Daily repurchases will be limited
to a maximum of 36,686 common shares, representing 25% of the
average daily trading volume for the six months ended November 30, 2021 (being 146,747 common shares),
except where purchases are made in accordance with the "block
purchase exception" of the TSX rules. All common shares purchased
under the NCIB will be cancelled.
Although the Company has a present intention to acquire its
common shares pursuant to the NCIB, the Company will not be
obligated to make any purchases and purchases may be suspended by
the Company at any time. The Company reserves the right to
terminate the NCIB earlier if it feels it is appropriate to do
so.
In connection with the NCIB program, AutoCanada has entered into
an automatic share purchase plan ("ASPP") with its designated
broker to allow for purchases of its common shares during certain
pre-determined black-out periods, subject to certain parameters as
to price and number of shares. Outside of these pre-determined
black-out periods, shares will be repurchased in accordance with
management's discretion, subject to applicable law. The ASPP has
been pre-cleared by the TSX and will terminate on December 22, 2022, unless earlier terminated in
accordance with its terms.
About AutoCanada
AutoCanada is a leading North American multi-location automobile
dealership group operating 78 franchised dealerships, comprised of
28 brands, in eight provinces in Canada as well as a group in Illinois, USA. AutoCanada currently sells
Chrysler, Dodge, Jeep, Ram, FIAT, Alfa Romeo, Chevrolet, GMC,
Buick, Cadillac, Ford, Infiniti,
Nissan, Hyundai, Subaru, Audi, Volkswagen, Kia, Mazda,
Mercedes-Benz, BMW, MINI, Volvo, Toyota, Lincoln, Honda, Porsche and Acura branded
vehicles. Additionally, the Company's Canadian operations segment
currently operates two used vehicle dealership supporting the Used
Digital Retail Division, and four stand-alone collision centres
(within our group of 18 collision centres). In 2020, our then
dealerships sold approximately 66,000 vehicles and processed over
756,000 service and collision repair orders in our 1,098 service
bays generating revenue in excess of $3
billion.
Additional information about AutoCanada Inc. is available at
www.sedar.com and the Company's website at www.autocan.ca.
Certain statements contained in this press release are
forward-looking statements and information (collectively,
"forward-looking statements") within the meaning of the applicable
Canadian securities legislation. We hereby provide cautionary
statements identifying important factors that could cause our
actual results to differ materially from those projected in these
forward-looking statements. Any statements that express, or involve
discussions as to, expectations, beliefs, plans, objectives,
assumptions or future events or performance (often, but not always,
through the use of words or phrases such as "will likely result",
"are expected to", "will continue", "is anticipated", "projection",
"vision", "goals", "objective", "target", "schedules", "outlook",
"anticipate", "expect", "estimate", "could", "should", "plan",
"seek", "may", "intend", "likely", "will", "believe" and similar
expressions) are not historical facts and are forward looking. In
particular, this press release contains forward-looking statements
with respect to, among other things, the intention to purchase
common shares under the NCIB, including the number of common shares
to be purchased, and the Company's acquisition pipeline.
The forward-looking statements included in this press release
are not guarantees of future performance and should not be unduly
relied upon. Readers are cautioned that forward-looking statements
are based on current expectations, estimates and projections that,
by their nature, forward-looking statements involve a number of
known and unknown risks and uncertainties, which could cause actual
results to differ materially from those anticipated and described
in the forward-looking statements. These known and unknown risks
and uncertainties include, but are not limited to: future operating
results, the impact of the COVID-19 pandemic on our operations,
financial condition and liquidity and the duration of such impacts;
potential changes in the regulatory and legislative environment;
volatility in interest and tax rates; operating risks inherent in
the automotive retail industry; and changes in general economic
conditions including the capital and credit markets all of which
may affect the Company's ability to or decision to purchase common
shares under its NCIB.
Forward-looking statements involve estimates and assumptions
and are subject to risks, uncertainties and other factors some of
which are beyond our control and difficult to predict. Accordingly,
actual results or outcomes may differ materially from those
expressed in the forward-looking statements.
AutoCanada cautions that the foregoing list of assumptions,
risks and uncertainties is not exhaustive. The Company's Annual
Information Form and other documents filed with securities
regulatory authorities (accessible through the SEDAR website at
www.sedar.com) describe the risks, material assumptions and other
factors that could influence actual results and which are
incorporated herein by reference. The forward-looking statements
contained in this press release speak only as of the date hereof
and AutoCanada assumes no obligation to publicly update or revise
them to reflect new events or circumstances, except as may be
required pursuant to applicable securities laws.
SOURCE AutoCanada Inc.