WINNIPEG, Feb. 19, 2020 /CNW/ - Exchange Income Corporation
("EIC" or the "Corporation") (TSX: EIF) today
announced that the Toronto Stock Exchange ("TSX") has
approved the renewal of EIC's normal course issuer bid (the
"NCIB"). Under the renewal, EIC can purchase up to an
aggregate of 1,736,542 common shares of EIC ("Common
Shares"), representing 5% of the issued and outstanding Common
Shares as at February 14, 2020.
Purchases of Common Shares pursuant to the NCIB may be made
through the facilities of the TSX commencing on February 22, 2020 and ending on February 21, 2021, or an earlier date in the
event that EIC purchases the maximum number of the Common Shares
available under the NCIB. EIC will pay the market price at
the time of acquisition for any Common Shares purchased through the
facilities of the TSX. All Common Shares acquired directly by
EIC under the NCIB will be cancelled.
As at February 14, 2020, there
were 34,730,840 Common Shares issued and outstanding. The average
daily trading volume of the Common Shares for the six-month period
ended January 31, 2020 was 109,647
Common Shares. Daily purchases will be limited to 27,411 Common
Shares, other than block purchase exceptions.
Pursuant to a previous notice of intention to conduct a normal
course issuer bid, under which the Corporation sought and received
approval from the TSX to purchase up to 1,567,004 Common Shares for
the period of February 22, 2019 to
February 21, 2020, the Corporation
purchased an aggregate of 58,600 Common Shares on the open market
at an average purchase price of $37.41 per Common Share.
EIC sought approval of the NCIB because it believes that, from
time to time, the market price of the Common Shares may not fully
reflect the value of the Common Shares. EIC believes that, in
such circumstances, the purchase of Common Shares represents an
accretive use of capital.
About Exchange Income Corporation
Exchange Income Corporation is a diversified
acquisition-oriented company, focused in two sectors: aerospace
& aviation services and equipment, and manufacturing. The
Corporation uses a disciplined acquisition strategy to identify
already profitable, well-established companies that have strong
management teams, generate steady cash flow, operate in niche
markets and have opportunities for organic growth.
For more information on the Corporation, please visit
www.ExchangeIncomeCorp.ca. Additional information relating to the
Corporation, including all public filings, is available on SEDAR
(www.sedar.com).
Caution concerning forward-looking
statements
The statements contained in this news
release that are forward-looking are based on current expectations
and are subject to a number of uncertainties and risks, and actual
results may differ materially. These uncertainties and risks
include, but are not limited to, the dependence of Exchange Income
Corporation on the operations and assets currently owned by it, the
degree to which its subsidiaries are leveraged, the fact that cash
distributions are not guaranteed and will fluctuate with the
Corporation's financial performance, dilution, restrictions on
potential future growth, the risk of shareholder liability,
competitive pressures (including price competition), changes in
market activity, the cyclicality of the industries, seasonality of
the businesses, poor weather conditions, foreign currency
fluctuations, legal proceedings, commodity prices and raw material
exposure, dependence on key personnel, and environmental, health
and safety and other regulatory requirements. Except as required by
Canadian securities law, the Corporation does not undertake to
update any forward-looking statements; such statements speak only
as of the date made. Further information about these and other
risks and uncertainties can be found in the disclosure documents
filed by Exchange Income Corporation with the securities regulatory
authorities, available at www.sedar.com.
SOURCE Exchange Income Corporation