Trading Symbol: Toronto Stock Exchange –
HDI
LANGLEY, BC, Dec. 29, 2020 /CNW/ - Hardwoods Distribution Inc.
("HDI" or the "Company") is pleased to announce that
the Toronto Stock Exchange (the "TSX") has accepted a notice
filed by the Company of its intention to make a Normal Course
Issuer Bid (the "Bid") to be transacted through the
facilities of the TSX or any alternative Canadian trading
system.
The notice provides that the Company may, during the period
commencing on December 31, 2020 and
ending on December 30, 2021, purchase
up to 1,564,407 of its common shares ("Shares") in total,
being approximately 10% of the Company's Public Float (as that term
is defined in the policies of the TSX) based on 21,134,725 issued
and outstanding Shares as at December 16,
2020. 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. All Shares will be purchased for
cancellation.
Pursuant to TSX policies, the maximum number of Shares that may
be purchased in one day pursuant to the Bid will be 15,491,
representing 25% of the average daily trading volume of the Shares
on the TSX. In addition, the Company may make, once per week,
a block purchase of Shares not directly or indirectly owned by
insiders of the Company, in accordance with TSX policies.
The Board of Directors believes the underlying value of the
Company may not be reflected in the current market price of its
Shares. As a result, depending upon future price movements and
other factors, the Board believes that the purchase of the Shares
would be 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 when the repurchased Shares are cancelled.
Under the Company's current normal course issuer bid that
commenced January 10, 2020 and
terminates December 30, 2020, the
Company was authorized to purchase up to 1,584,350 Shares.
Under that bid, the Company has purchased 185,233 Shares
through open market purchases at a volume weighted average price of
$13.4516 per Share.
In connection with the Bid, the Company will enter into an
automatic share purchase plan ("ASPP") with a designated
broker. The ASPP is intended to allow for the purchase of
Shares under the Bid at times when the Company would ordinarily not
be permitted to purchase Shares due to regulatory restrictions and
customary self-imposed blackout periods. Pursuant to the
ASPP, before entering into a blackout period, the Company may, but
is not required to, instruct the designated broker to make
purchases under the Bid in accordance with the terms of the ASPP.
Such purchases will be determined by the designated broker at
its sole discretion based on purchasing parameters set by the
Company in accordance with the rules of the TSX and any applicable
alternative Canadian trading system, applicable securities laws and
the terms of the ASPP. The ASPP will be in effect for the
term of the bid.
About HDI
HDI is North America's largest
distributor of architectural grade building products to the
residential and commercial construction markets. The Company
operates a North American network of 73 distribution centres
utilizing three industry leading distribution brands: Hardwoods
Specialty Products; the Frank Paxton Lumber Company; and Rugby
Architectural Building Products. HDI also operates one sawmill and
kiln drying operation, Hardwoods of Michigan.
SOURCE Hardwoods Distribution Inc.