TORONTO, Aug. 23, 2018 /CNW/ - Chesswood Group Limited
("Chesswood") (TSX: CHW) announced today that the Toronto Stock
Exchange (the "TSX") has accepted its notice of intention to
conduct a normal course issuer bid to enable it to purchase up to
1,043,895 of its 16,408,406 Common Shares ("Shares") outstanding,
representing approximately 10 per cent of Chesswood's public float
of 10,438,957 Shares as of August 21,
2018. The average daily trading volume of Chesswood for the
past six months was 17,696, and a maximum of 4,420 Shares (being
approximately 25% of the average daily trading volume during the
preceding six months) may be purchased by Chesswood on any one day
under its normal course issuer bid, except where purchases are made
in accordance with "block purchases" exemptions under applicable
TSX policies.
The normal course issuer bid will commence on August 25, 2018, and will terminate on the
earlier of August 24, 2019, the date
Chesswood completes its purchases pursuant to the notice of
intention to make a normal course issuer bid filed with the TSX or
the date of notice by Chesswood of termination of the bid.
Chesswood previously sought and received approval from the TSX
to purchase up to 1,085,981 of its outstanding Shares in connection
with its previous normal course issuer bid, which expires on
August 24, 2018. As of
August 21, 2018, Chesswood had
purchased 293,096 Shares through the TSX at a weighted average
price of $10.5177 per Share.
Chesswood believes that the market price of the Shares at certain
times may be attractive and that the purchase of Shares from time
to time would be an appropriate use of its funds in light of
potential benefits to remaining shareholders.
Chesswood also announces that it will enter into an automatic
share purchase plan agreement ("ASPP") with a broker to allow for
the purchase of its Shares under the NCIB at times when Chesswood
normally would not be active in the market due to regulatory
restrictions or self-imposed trading blackout periods. Before
entering into a blackout period, Chesswood may, but is not required
to, instruct the designated broker to make purchases under the NCIB
in accordance with the terms of the ASPP. Such purchases will be
determined by the broker in its sole discretion based on parameters
established by Chesswood prior to the blackout period in accordance
with TSX rules and the terms of the ASPP. The terms of the ASPP
have been pre-cleared by the TSX. Outside of these pre-determined
blackout periods, Shares will be purchased in accordance with
Management's discretion.
Chesswood will make purchases on the open market through the
facilities of the TSX in accordance with the rules and policies of
the TSX or alternative trading systems in Canada. The price
that Chesswood will pay for any such Shares will be the market
price of such Shares on the TSX at the time of acquisition.
Shares purchased under the bid will be cancelled following
purchase.
About Chesswood Group Limited
Through two wholly-owned subsidiaries in the U.S. and
Canada, Chesswood Group Limited is
North America's only
publicly-traded commercial equipment finance company focused on
small and medium-sized businesses with a portfolio exceeding
$800 million in gross finance
receivables. Our Colorado-based Pawnee Leasing Corporation,
founded in 1982, finances a highly diversified portfolio of
commercial equipment leases and loans through established
relationships with over 600 independent brokers in the U.S.
In Canada, our subsidiary Blue
Chip Leasing Corporation has been originating and servicing
commercial equipment leases and loans since 1996, and today
operates through a nationwide network of more than 50 independent
brokers.
Based in Toronto, Canada,
Chesswood's shares trade on the TSX under the symbol CHW.
To learn more about Chesswood Group Limited,
visit www.ChesswoodGroup.com.
The separate websites of Chesswood Group Limited's operating
businesses are at www.PawneeLeasing.com and
www.BlueChipLeasing.com.
This press release contains forward-looking statements that
involve a number of risks and uncertainties because they relate to
events and depend on circumstances that will occur in the future.
Many factors could cause actual results and developments to differ
materially from those expressed or implied by these forward-looking
statements.
NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY
AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED
HEREIN.
SOURCE Chesswood Group Limited