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TORONTO, Dec. 16,
2022 /CNW/ - Standard Mercantile Acquisition Corp.
(TSX: SMA) (the "Company") announced today that it has
received approval from the Toronto Stock Exchange ("TSX") to
commence a normal course issuer bid ("NCIB"), which will
enable it to purchase up to 451,933 of its 7,318,067 total issued
and outstanding Class A shares ("Shares"), representing
approximately 10% of its public float of 4,519,334 Shares as at the
date hereof.
The Company intends to commence the NCIB on December 20, 2022. The NCIB will expire on
December 19, 2023 or such earlier
date as the Company completes its purchases pursuant to the NCIB.
All purchases under the NCIB will be made on the open market
through the facilities of the TSX or alternative trading systems in
Canada at market prices prevailing
at the time of purchase. In accordance with rules and policies of
the TSX, any purchases under the NCIB will be limited to a maximum
of 1,000 Shares per trading day. The average daily trading volume
of the Shares on the TSX for the six months ended November 30, 2022 was 1,599 Shares. Any Shares
purchased by the Company will be cancelled.
On June 16, 2016, the shareholders
of the Company (the "Shareholders") approved the
orderly wind-up of the Company (the "Orderly Wind-Up"), as
amended by Shareholders at the Company's May 6, 2021 at the Annual and Special Meeting of
Shareholders. The primary purpose of the NCIB is to distribute net
proceeds under the amended Orderly Wind-Up to Shareholders.
In connection with the NCIB, the Company intends to enter into
an automatic purchase plan with its broker, Haywood Securities
Inc., on December 20, 2022 to allow
for the purchase of Shares at times when the Company ordinarily
would not be active in the market due to its own internal trading
blackout periods, insider trading rules or otherwise, in accordance
with applicable Canadian securities laws.
About the Company
The Company holds a portfolio of mortgages in Canada. At the Company's 2021 annual and
special meeting of shareholders, the Company sought and received
Shareholder approval to change its name to "Standard Mercantile
Acquisition Corp." and broaden the parameters of the Orderly
Wind-Up. The Company remains focused on monetizing its remaining
mortgage assets pursuant to the Orderly Wind-Up through potential
future distributions of cash as and when available, and as
determined to be in the best interests of the Company and
Shareholders, or otherwise and is considering options to enable
Shareholders to participate in the potential future value of the
Company through transactions that could capitalize on the Company's
public listing. The Board has experience in sourcing, evaluating
and executing transactions of this nature. There can be no
assurances as to the timing or quantum of any future cash
distributions or other monetization transactions.
SOURCE Standard Mercantile Acquisition Corp.