E-L Financial Corporation Limited Announces Renewal of Normal Course Issuer Bid
E-L Financial Corporation Limited (TSX:ELF) (TSX:ELF.PR.F)
(TSX:ELF.PR.G) (TSX:ELF.PR.H) (the “Company”) announced today that
the Toronto Stock Exchange (the “Exchange”) has accepted a notice
filed by the Company of its intention to proceed with the renewal
of its Normal Course Issuer Bid (the “Bid”) to be transacted
through the facilities of the Exchange or through alternative
Canadian trading systems.
The notice provides that the Company may, during
the 12-month period commencing March 9, 2021 and ending March 8,
2022, purchase up to 185,428 common shares in the capital of the
Company (“Shares”) in total, being approximately 5% of the total
number of 3,708,576 Shares outstanding as at March 2, 2021. The
price which the Company will pay for any such Shares will be the
prevailing market price at the time of acquisition. The actual
number of Shares which may be purchased pursuant to the Bid will be
determined by management of the Company. Any Shares purchased
pursuant to the Bid will be cancelled.
The average daily trading volume of the Shares
on the Exchange for the most recently completed six calendar months
is 965. Under the Bid, the Company may purchase up to 1,000 Shares
on the Exchange during any trading day.
The Company has entered into a pre-defined
automatic securities purchase plan with its broker to allow for the
repurchase of Shares in connection with the Bid at times when the
Company ordinarily would not be active in the market due to its own
internal trading blackout periods, insider trading rules or
otherwise. Outside of the restricted periods, the timing of
purchases will be determined by management of the Company.
Decisions regarding purchases will be based on market conditions,
share price, best use of available cash, and other factors. The
funding for any purchase pursuant to the Bid will be financed out
of the working capital of the Company.
The Company’s previous Normal Course Issuer Bid
(the “Previous NCIB”) expires on March 8, 2021. Under the Previous
NCIB, the Company obtained the approval of the Exchange to purchase
up to 200,970 Shares, which represented 5% of the 4,019,409 Shares
issued and outstanding as at the close of business on March 2,
2020. The Company purchased on the open market and cancelled an
aggregate of 200,970 Shares under the Previous NCIB at an average
price of $598.94 per Share.
The Board of Directors believes that, in the
event the Shares trade in a price range that does not fully reflect
their value, the purchase of the Shares would be an appropriate use
of corporate funds in the best interests of the Company and its
shareholders. Furthermore, the purchases are expected to benefit
all persons who continue to hold Shares by increasing their equity
interest in the Company if the repurchased Shares are
About E-L Financial
The Company operates as an investment and
insurance holding company. In managing its operations, the Company
distinguishes between two operating segments, E-L Corporate and
E-L Corporate represents investments in stocks
and fixed income securities held directly and indirectly through
pooled funds, closed-end investment companies and other investment
companies. The investment strategy is to accumulate shareholder
value through long-term capital appreciation and dividend and
interest income from its investments.
Empire Life is a subsidiary of the Company.
Since 1923, Empire Life has provided individual and group life and
health insurance, investment and retirement products to Canadians.
Empire Life’s mission is to make it simple, fast and easy for
Canadians to get the investment, insurance and group benefits
coverage they need to build wealth, generate income, and achieve
This press release may contain forward-looking
information within the meaning of applicable securities regulation.
The words “may”, “will”, “would”, “should”, “could”, “expects”,
“plans”, “intends”, “trends”, “indications”, “anticipates”,
“believes”, “estimates”, “predicts”, “likely” or “potential” or the
negative or other variations of these words or other comparable
words or phrases, are intended to identify forward-looking
statements. These statements include, without limitation,
statements regarding the Company’s intentions and expectations with
respect to the Bid and purchases thereunder, the effects of
purchases under the Bid, and the Company’s intention to enter into
a pre-defined automatic securities purchase plan with its broker.
Purchases made under the Bid are not guaranteed and may be
suspended at the discretion of the Board of Directors.
Forward-looking information is based on a number of assumptions and
is subject to a number of risks and uncertainties that may cause
the results or events mentioned in this press release to differ
materially from those that are discussed in or implied by such
forward-looking information. These risks and uncertainties include,
but are not limited to, general, local economic, and business
conditions. All forward-looking information in this press release
speaks as of the date hereof. The Company does not undertake to
update any such forward-looking information whether as a result of
new information, future events or otherwise. Additional information
about these assumptions and risks and uncertainties is disclosed in
filings with securities regulators filed on SEDAR
For more information, please
Richard B. CartyVice-President, General Counsel
and Corporate SecretaryE-L Financial Corporation LimitedTelephone:
(416) 947-2578Fax: (416) 362-2592
Scott Ewert Vice-President, Chief Financial
Officer E-L Financial Corporation LimitedTelephone: (416)
947-2578Fax: (416) 362-2592