TORONTO, Dec. 23, 2016 /CNW/ - Home Capital Group
Inc. (TSX: HCG) announced today that it has filed with the Toronto
Stock Exchange ("TSX") a Notice of Intention to make a Normal
Course Issuer Bid, as approved by Home Capital's Board of
Directors, pursuant to which Home Capital may purchase for
cancellation up to 5,336,040 of its Common Shares, representing
approximately 10% of its public float as of December 19, 2016 (being 5,920,340 Common Shares,
calculated in accordance with TSX rules) less the number of Common
Shares repurchased under Home Capital's normal course issuer bid
which commenced September 16, 2016.
The average daily trading volume of Home Capital's Common Shares
from June 1, 2016 to November 30, 2016 was 247,806 Common Shares.
Daily purchases will be limited to 61,951 Common Shares, other than
block purchase exceptions. As of December
19, 2016, Home Capital had 64,503,669 Common Shares issued
and outstanding. The purchases may commence on January 1, 2017, and will terminate on
December 31, 2017, or on such earlier
date as Home Capital may complete its purchases pursuant to the
Notice of Intention. The purchases made by Home Capital will
be effected through the facilities of TSX and in accordance with
the rules of TSX. The price that Home Capital will pay for any
Common Shares will be the market price of such shares at the time
of acquisition. Home Capital will make no purchases of Common
Shares other than open-market purchases.
The TSX has approved the early termination of Home Capital's
normal course issuer bid which commenced September 16, 2016. Under that bid, Home Capital
acquired 584,300 Common Shares. In the twelve month period ended
December 12, 2016, Home Capital
acquired 1,695,300 Common Shares under normal course issuer bids at
a weighted average price of $29.10
per share. The timeframe of Home Capital's new normal course
issuer bid aligns with Home Capital's fiscal year.
Home Capital believes that, from time to time, the market price
of its Common Shares does not fully reflect the value of its
business and its future business prospects. As a result, Home
Capital believes that the purchase of its outstanding Common Shares
may represent an appropriate and desirable use of its available
funds.
Home Capital has entered into an automatic purchase plan with a
broker. From time to time, when Home Capital does not possess
material non-public information about itself or its securities, it
may direct its broker to allow for the purchase of Common Shares at
times when Home Capital ordinarily would not be active in the
market due to its own internal trading blackout periods, insider
trading rules or otherwise. Any such plans entered into with Home
Capital's broker will be adopted in accordance with applicable
Canadian securities laws.
Home Capital Group Inc. is a public company, traded on the
Toronto Stock Exchange (HCG), operating through its principal
subsidiary, Home Trust Company. Home Trust is a federally regulated
trust company offering residential and non-residential mortgage
lending, securitization of insured residential first mortgage
products, consumer lending and credit card services. In addition,
Home Trust offers deposits via brokers and financial planners, and
through its direct to consumer deposit brand, Oaken Financial. Home
Trust also conducts business through its wholly owned subsidiary,
Home Bank. Licensed to conduct business across Canada, Home Trust has offices in Ontario, Alberta, British
Columbia, Nova Scotia,
Quebec and Manitoba.
SOURCE Home Capital Group Inc.