Trading Symbol: Toronto Stock Exchange – HDI
LANGLEY, BC, Feb. 1, 2019 /CNW/ - Hardwoods Distribution Inc.
("HDI" or the "Company") is pleased to announce
that the Toronto Stock Exchange (the "TSX") has accepted a
notice filed by the Company of its intention to make a Normal
Course Issuer Bid (the "Bid") to be transacted through the
facilities of the TSX or any alternative Canadian trading
system.
The notice provides that the Company may, during the 12-month
period commencing on February 5, 2019
and ending on February 4, 2020,
purchase up to 1,612,147 of its common shares ("Shares") in
total, being approximately 10% of the Company's Public Float (as
that term is defined in the policies of the TSX) based on
21,539,116 issued and outstanding Shares as at January 30, 2019. The price which the
Company will pay for any such Shares will be the prevailing market
price at the time of acquisition. The actual number of Shares
which may be purchased pursuant to the Bid will be determined by
management of the Company. All Shares will be purchased for
cancellation.
Pursuant to TSX policies, the maximum number of Shares that may
be purchased in one day pursuant to the Bid will be 10,730,
representing 25% of the average daily trading volume of the Shares
on the TSX. In addition, the Company may make, once per week,
a block purchase of Shares not directly or indirectly owned by
insiders of the Company, in accordance with TSX policies.
The Board of Directors believes the underlying value of the
Company may not be reflected in the current market price of its
Shares. As a result, depending upon future price movements
and other factors, the Board believes that the purchase of the
Shares would be in the best interests of the Company and its
shareholders. Furthermore, the purchases are expected to
benefit all persons who continue to hold Shares by increasing their
equity interest in the Company when the repurchased Shares are
cancelled.
About HDI
HDI is North America's largest
distributor of architectural building products to the residential
and commercial construction markets. The Company operates a
network of 63 distribution centres in the U.S. and Canada, as well as one sawmill and kiln drying
operation.
SOURCE Hardwoods Distribution Inc.