CALGARY, AB, Oct. 7, 2020 /CNW/ - Genesis Land
Development Corp. (the "Company" or "Genesis") (TSX: GDC) is
pleased to announce that the Toronto Stock Exchange (TSX) has
accepted a notice filed by Genesis to renew its Normal Course
Issuer Bid ("Bid") for a one year period. The Bid will commence on
October 13, 2020 and will terminate
on the earlier of: (i) October 12,
2021; and (ii) the date on which the maximum number of
Genesis common shares ("Common Shares") that may be purchased
pursuant to the Bid have been purchased. Purchases of Common
Shares under the Bid will be effected through the facilities of the
TSX or alternative Canadian trading systems at the market price at
the time of purchase. All Common Shares purchased pursuant to the
Bid will be cancelled.
The Company's board of directors and management believe that the
market prices of the Common Shares do not properly reflect the
underlying value of the Company's assets and business and,
accordingly, the purchase by the Company of Common Shares pursuant
to the Bid constitutes an appropriate investment of corporate funds
which will benefit both the Company and its shareholders.
Pursuant to the Bid, Genesis may purchase for
cancellation up to 2,098,885 Common Shares, which is 5% of Genesis'
issued and outstanding Common Shares as at September 30, 2020. The purchase price of the
Common Shares is restricted to a maximum of $3.00 per Common Share and an overall maximum of
$6,296,655. The Company intends to
monitor these restrictions and, subject to TSX approval, make any
appropriate alterations in accordance with the Bid from time to
time. Pursuant to the rules of the TSX, the maximum number of
Common Shares that the Company may purchase in any one day is 5,040
Common Shares or 25% of the Company's average daily trading volume
of 20,161 Common Shares on the TSX in the six months ended
September 30, 2020. Genesis may also
make one block purchase per calendar week which exceeds the daily
purchase restriction in accordance with TSX rules.
Effective October 13, 2020, the
Company has arranged to renew the automatic share purchase plan
with Stifel Nicolaus Canada Inc., the designated broker under the
Bid, to facilitate the purchase of Common Shares pursuant to the
Bid based on parameters established by the Company.
Pursuant to a previous notice of intention to conduct a normal
course issuer bid under which Company sought and received approval
from the TSX to purchase up to 2,109,016 Common Shares for the
period October 10, 2019 to
October 9, 2020, the Company had
purchased, as of September 30, 2020,
210,004 Common Shares on the open market at an average purchase
price of $1.62 per share. As of
September 30, 2020, 41,977,715 Common
Shares were issued and outstanding with a public float of
11,845,752 Common Shares.
About Genesis
Genesis Land Development Corp. is a land developer and
residential home builder in the Calgary Metropolitan Area. The Corporation's
common shares are listed on the Toronto Stock Exchange (TSX:
GDC).
Cautionary Statement Regarding Forward-Looking
Information
This press release contains certain statements
which constitute forward looking statements or information
("forward-looking statements") within the meaning of applicable
securities legislation. This information includes but is not
limited to Genesis' intentions with respect to the normal course
issuer bid and purchases thereunder and the effects of purchases
under the bid. Although Genesis believes that the anticipated
future results, performance or achievements expressed or implied by
the forward-looking statements are based upon reasonable
assumptions and expectations, the reader should not place undue
reliance on forward-looking statements because they involve
assumptions, known and unknown risks, uncertainties and other
factors many of which are beyond the Company's control, which may
cause the actual results, performance or achievements of Genesis to
differ materially from anticipated future results, performance or
achievement expressed or implied by such forward-looking
statements. Accordingly, Genesis cannot give any assurance that it
will complete any purchases under the normal course issuer
bid.
Factors that could cause actual results to
differ materially from those set forth in the forward-looking
statements include, but are not limited to: a change in Genesis'
intention to purchase shares; the impact or unanticipated impact of
general economic conditions in Canada, the United
States and globally; the impact of contractual arrangements
and incurred obligations on future operations and liquidity; local
real estate conditions, including the development of properties in
close proximity to Genesis' properties; timely leasing of
newly-developed properties and re-leasing of occupied square
footage upon expiration; dependence on tenants' financial
condition; the uncertainties of real estate development and
acquisition activity; the ability to effectively integrate
acquisitions; fluctuations in interest rates; ability to access and
raise capital on favorable terms; the impact of newly-adopted
accounting principles on Genesis' accounting policies and on
period-to-period comparisons of financial results; not realizing on
the anticipated benefits from transactions or not realizing on such
anticipated benefits within the expected time frame; labor matters,
governmental regulations, stock market volatility and other risks
and factors described from time to time in the documents filed by
Genesis with securities regulators in Canada available at www.sedar.com, including
Genesis' Annual Information Form under the heading "Risk Factors"
and in Genesis' most recent interim report under the heading
"Management's Discussion and Analysis". Furthermore, the
forward-looking statements contained in this press release are made
as of the date of this press release and, except as required by
applicable law, Genesis does not undertake any obligation to
publicly update or to revise any of the forward-looking statements,
whether as a result of new information, future events or
otherwise.
SOURCE Genesis Land Development Corp.