Trading Symbol: Toronto Stock Exchange – HDI
LANGLEY, BC, Dec. 29, 2021 /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, 2021 and
ending on December 30, 2022, purchase
up to 1,855,938 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 23,614,930 issued
and outstanding Shares as at December 17,
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. 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 18,122,
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 that during the course of the
Bid the market price of the Shares may not, from time to time,
reflect the underlying value of the Company. As a result,
depending upon future price movements and other factors, the Board
of Directors believes that the purchase of the Shares may be in the
best interests of the Company and its shareholders.
Furthermore, any 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 December 31, 2020 and
terminates December 30, 2021, the
Company was authorized to purchase up to 1,564,407 Shares.
Under that bid, the Company has not made any open market
purchases during the period from December
31, 2020 to today's date.
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 one of North America's
largest suppliers of specialty building products to fabricators,
home centers and builders servicing the new residential, repair and
remodel, and commercial construction end-markets. The Company
currently operates a network in North
America of 83 distribution facilities in the United States and Canada. HDI's common shares are listed on the
TSX under the symbol HDI.
SOURCE Hardwoods Distribution Inc.
