VANCOUVER, British Columbia, May 25, 2023 (GLOBE NEWSWIRE) — Dominion Lending Centres Inc. (TSX:DLCG) (“DLCG” or the “Company”) announced today that the Toronto Stock Exchange (TSX) has approved the Company’s new normal course issuer bid (NCIB) to purchase, for cancellation, up to 1,000,000 of its outstanding class “A” common shares (Common Shares”).
Purchases under the NCIB may be made through the facilities of the TSX and alternative Canadian trading systems, commencing on May 29, 2023 and continuing until May 28, 2024, when the bid expires, or such earlier date on which the Company has either acquired the maximum number of Common Shares allowable under the NCIB or otherwise decides not to make any further repurchases under the NCIB. The maximum number of Common Shares that DLCG may repurchase for cancellation represents approximately 2% of the 48,286,091 Common Shares issued and outstanding as at May 23, 2023.
The renewal of the Company’s NCIB is intended to provide an additional capital allocation tool to supplement its dividend program as a means of returning capital to shareholders. Repurchases of Common Shares pursuant to the NCIB are expected to be opportunistic and will be predicated upon maintaining a strong balance sheet, performance of the business, and the availability and attractiveness of alternative capital investment opportunities. The price that DLCG will pay for Common Shares in open market transactions will be the market price at the time of purchase and Common Shares purchased under the NCIB will be cancelled. The actual number of Common Shares purchased under the NCIB, the timing of purchases, and the price at which the Common Shares are acquired will depend upon future market conditions.
The NCIB will be effected in accordance with the TSX’s NCIB rules, which contain restrictions on the number of Common Shares that may be purchased on a single day, subject to certain exceptions for block purchases, based on the average daily trading volumes of DLCG’s Common Shares on the applicable exchange. Subject to exceptions for block purchases, DLCG will limit daily purchases of Common Shares on the TSX in connection with the NCIB to no more than 1,000 Common Shares during any trading day (as required by TSX rules based on DLCG’s average daily trading volume). Subject to exceptions for block purchases, DLCG will limit daily purchases of Common Shares on the TSX in connection with the NCIB to no more than 1,000 Common Shares during any trading day (as required by TSX rules) based on DLCG’s average daily trading volume of 3,177 for the six-month period ended April 30, 2023.
The Company will also enter into an automatic share purchase plan (“ASPP”) with a broker in order to facilitate repurchases of Common Shares under the NCIB. The ASPP will facilitate purchases under the NCIB as it will allow for purchases of Common Shares to be made at times when the Company would ordinarily not be permitted to make purchases, whether due to regulatory restriction or customary self-imposed blackout periods. Under the ASPP, the Company’s broker may purchase Common Shares from the effective date of the ASPP until the end of the NCIB. The ASPP will facilitate purchases of Common Shares under the NCIB by authorizing the Company’s broker to make purchases at its sole discretion based on parameters set by the Company in accordance with TSX rules, applicable law and the terms of the ASPP. Outside of periods that the Company is restricted from purchasing Common Shares pursuant to insider trading rules or its own internal trading blackout policies, Common Shares may also be purchased based on management’s discretion, in compliance with TSX rules and applicable law. All purchases of Common Shares made under the ASPP will be included in determining the number of Common Shares purchased under the NCIB.
Pursuant to its existing NCIB, under which the Company has approval from the TSX to purchase up to 1,200,000 of its outstanding Common Shares during the period from May 27, 2022 to May 26, 2023, DLCG has purchased 302,575 Common Shares on the TSX and alternative trading systems at a weighted average purchase price of $2.85 per Common Share.
About Dominion Lending Centres Inc.
The DLC Group is Canada’s leading network of mortgage professionals. The DLC Group operates through Dominion Lending Centres and its three main subsidiaries, MCC Mortgage Centre Canada Inc., MA Mortgage Architects Inc. and Newton Connectivity Systems Inc., and has operations across Canada. The DLC Group’s extensive network includes ~8,000 agents and ~544 locations. Headquartered in British Columbia, the DLC Group was founded in 2006 by Gary Mauris and Chris Kayat.
Contact information for the Corporation is as follows:
Co-Chief Financial Officer
Resource News, Oil and Gas News, Mining News, Renewable News