Rocky Mountain Dealerships Inc. Announces Normal Course Issuer Bid
CALGARY, Alberta--(BUSINESS WIRE)--Nov 19, 2018--Rocky Mountain Dealerships Inc. (TSX:RME, and hereinafter ” RME ”), announced today that it has received acceptance from the Toronto Stock Exchange (” TSX ”) of its Notice of Intention to Make a Normal Course Issuer Bid (” NCIB ”) to purchase certain issued and outstanding common shares of RME (” Shares ”). Pursuant to the NCIB, RME may purchase for the purpose of cancellation up to 1,560,907 Shares, representing 10% of the “public float” (calculated as at November 14, 2018) over a twelve-month period commencing November 21, 2018. The NCIB will expire no later than November 20, 2019.
RME’s Board of Directors believes the underlying value of RME may not be reflected in the current market price for RME’s Shares, and has therefore determined that the NCIB is an appropriate use of RME’s financial resources, and is in the best interests of RME’s shareholders at this time.
The decisions regarding the timing and size of any Share transactions under the NCIB will be subject to the discretion of RME’s Management, and will be based on a variety of factors, including market conditions, available capital, and covenant compliance. RME has appointed Raymond James Ltd. as its broker, who will conduct the purchases on RME’s behalf. Pursuant to the NCIB, Shares may be repurchased in open market transactions on the TSX and/or alternative trading platforms as permitted under the rules of the TSX and applicable securities laws. For the six months ended October 31, 2018, RME’s average daily trading volume (” ADTV ”) on the TSX was 33,832 Shares. Daily purchases made pursuant to the NCIB (other than purchases made pursuant to the “block purchase” exemption) are limited to a maximum of 25% of RME’s ADTV, which is of 8,458 Shares per day. All Shares that are purchased under this NCIB will be cancelled.
Caution regarding forward-looking statements
Certain information set forth in this news release, including, without limitation, any statements with respect to possible future purchases by RME of its Shares, the factors that may govern Management’s share purchase decisions under the NCIB, the method of acquisition of the Shares, and statements that may discuss or imply any financial or economic benefit to RME or its shareholders resulting from the NCIB, are forward-looking information within the meaning of applicable Canadian securities laws. By its nature, forward-looking information is subject to numerous risks and uncertainties, some of which are beyond RME’s control. While this forward-looking information is based on information and assumptions that RME’s management believes to be reasonable, there is significant risk that the forward-looking statements will prove not to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements, as a number of factors could cause actual future performance and events to differ materially from that expressed in the forward-looking statements. Accordingly, this news release is subject to the disclaimer and qualified by risks and other factors discussed by RME in its MD&A for the quarter ended September 30, 2018, and as discussed in RME’s Annual Information Form dated March 13, 2018 under the heading “Risk Factors.” Except as required by law, RME disclaims any intention or obligation to update or revise forward-looking statements, and further reserves the right to change, at any time, at its sole discretion, its current practice of updating its guidance and outlooks.
RME is Canada’s largest agriculture equipment dealer with branches located throughout Alberta, Saskatchewan, and Manitoba. Through its dealer network, RME sells, rents, and leases new and used agriculture equipment and offers product support and finance to its customers.
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CONTACT: For investor and media inquiries please contact:
Rocky Mountain Dealerships Inc.
Clayton Paradis, 403-999-7658
KEYWORD: NORTH AMERICA CANADA
INDUSTRY KEYWORD: NATURAL RESOURCES AGRICULTURE PROFESSIONAL SERVICES FINANCE
SOURCE: Rocky Mountain Dealerships Inc.
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PUB: 11/19/2018 07:00 AM/DISC: 11/19/2018 07:01 AM