RNX ... Interesting move I did not see coming.
RNC Minerals Announces Normal Course Issuer Bid
Canada NewsWire
TORONTO, April 15, 2020
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES./
TORONTO, April 15, 2020 /CNW/ - Royal Nickel Corporation dba. RNC Minerals ("RNC" or the "Company") (TSX:RNX) announced today that it has received the approval of the Toronto Stock Exchange (the "TSX") for a normal course issuer bid (the "Bid") to purchase up to no more than 30,415,198 of its issued and outstanding common shares (the "Common Shares").
Purchases under the Bid may commence on April 17, 2020. The Bid will expire no later than April 16, 2021. Purchases of Common Shares will be made through the facilities of the TSX in accordance with its rules. Purchases may also be made through alternative Canadian trading systems. The average daily trading volume of the Common Shares for the previous six calendar months ("ADTV") was 1,533,196 Common Shares. Subject to the TSX's block purchase exception, on any trading day, purchases under the Bid will not exceed 383,299 Common Shares (25% of the ADTV). The price that the Company will pay for any Common Shares purchased under the Bid will be the prevailing market price at the time of purchase. Any Common Shares purchased by the Company will be cancelled. The Company has not made any purchases of its common shares during the past twelve months.
As of April 8, 2020, there were 608,303,967 Common Shares issued and outstanding. The 30,415,198 Common Shares that may be repurchased under the Bid represents 5% of the Common Shares issued and outstanding.
Any purchases made under the Bid would, among other factors, reflect the Corporation's belief that its common shares trade at a significant discount to their underlying value
The Board of Directors has determined that the Bid is an effective use of the Company's financial resources when its common shares trade at a significant discount to their underlying value.
To the knowledge of the Company, no director, senior officer or other insider of the Company currently intends to sell any common shares under the Bid. However, sales by such persons through the facilities of the TSX may occur if the personal circumstances of any such person change or any such person makes a decision unrelated to these purchases under the Bid. If during the course of the Bid the Company becomes aware that such persons intend to sell their common shares then the Company will not intentionally acquire such common shares pursuant to the Bid. The benefits to any such person whose shares are purchased would be the same as the benefits available to all other holders whose shares are purchased.
Haywood Securities Inc. has been engaged to undertake purchases under the Bid. |
