Trading Symbol: Toronto Stock Exchange – HDI
LANGLEY, BC, Jan. 8, 2020 /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 period
commencing on January 10, 2020 and
ending on December 30, 2020, purchase
up to 1,584,350 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 21,338,627 issued and
outstanding Shares as at January 6, 2020. 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 9,708,
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.
Under the Company's current normal course issuer bid that
commenced February 5, 2019 and
terminates January 9, 2020, the
Company was authorized to purchase up to 1,612,147 Shares. Under
that bid, the Company has purchased 287,980 Shares through open
market purchases at a volume weighted average price of $12.86 per Share.
In connection with the Bid, the Company will enter into an
automatic share purchase plan ("ASPP") with a designated broker.
The ASPP is intended to allow for the purchase of Shares under the
Bid at times when the Company would ordinarily not be permitted to
purchase Shares due to regulatory restrictions and customary
self-imposed blackout periods. Pursuant to the ASPP, before
entering into a blackout period, the Company may, but is not
required to, instruct the designated broker to make purchases under
the Bid in accordance with the terms of the ASPP. Such purchases
will be determined by the designated broker at its sole discretion
based on purchasing parameters set by the Company in accordance
with the rules of the TSX and any applicable alternative Canadian
trading system, applicable securities laws and the terms of the
ASPP. The ASPP will be in effect for the term of the bid.
About HDI
HDI is North America's largest
distributor of architectural building products to the residential
and industrial construction markets. The Company operates a North
American network of 66 distribution centres, as well as one sawmill
and kiln drying operation.
SOURCE Hardwoods Distribution Inc.