TORONTO–(BUSINESS WIRE)–CI Financial Corp. (“CI”) (TSX: CIX, NYSE: CIXX) announced today that the Toronto Stock Exchange (“TSX”) has accepted its notice of intention to make a normal course issuer bid and an Automatic Securities Purchase Plan (“ASPP”).
CI intends to purchase up to 16,828,703 of its common shares by way of a normal course issuer bid, through the facilities of the TSX and/or other systems Canadian trading venues or through any other means permitted by the relevant securities regulator. Common shares may be purchased by CI, or purchased by a trustee, to satisfy obligations under stock-based compensation plans or employee stock purchase plans for CI. All Common Shares purchased by CI (but not those purchased by such non-independent trustee or broker) will be cancelled. The 16,828,703 common shares represent 10% of CI’s total free float (168,287,039). As of June 8, 2022, there were 192,356,369 issued and outstanding common shares of CI.
It is expected that purchases under the normal course issuer bid may begin on June 20, 2022 and will end on June 19, 2023, or such earlier date as CI completes its purchases or provides a notice of termination. Purchases will be made through the facilities of the TSX at prevailing market prices or through any other means authorized by the Ontario Securities Commission or the Canadian Securities Administrators, and through parallel trading in Canada. CI is authorized to purchase up to 191,343 common shares per day, or 25% of the average daily trading volume of common shares for the six months ended May 31, 2022 (765,372).
CI believes that the market price of the common shares may, at times during the term of the normal course issuer bid, be undervalued depending on the financial performance and prospects of CI and, therefore, the Board of Directors believes that the purchase of Common Shares is an appropriate use of funds to enhance shareholder value.
Under its normal course issuer bid, CI obtained approval to purchase up to 18,194,790 of its common shares, of which CI, the trustee and non-independent broker, purchased 13 758,187 common shares at a weighted average price of $20.53 per common share between June 18, 2021 and June 8, 2022, through the facilities of the TSX and Canadian alternative trading systems.
CI has entered into an AESP with National Bank Financial Inc. (“NBF”) to permit the purchase of common shares under the issuer bid at times when CI would not normally be permitted to purchase its common shares due to regulatory restrictions or self-imposed actions. blackout periods.
Under the ASPP, prior to entering a blackout period, CI may, but is not required to, instruct NBF to make purchases under the OPRCA in accordance with the terms of the ‘ASPP. Such purchases will be determined by NBF in its sole discretion based on parameters established by CI prior to the blackout period in accordance with TSX rules, applicable securities laws and the terms of the ESAP. The ESAP has been pre-cleared by the TSX and will be implemented beginning June 20, 2022.
Outside of the pre-determined blackout periods, Common Shares may be purchased under the issuer bid at the discretion of CI’s management, in accordance with TSX rules and applicable securities laws. All purchases made pursuant to the AESP will be included in the calculation of the number of common shares purchased pursuant to the issuer bid.
About CI Financial
CI Financial Corp. is an integrated global wealth and asset management company. CI managed and advised approximately $354.6 billion in client assets as of April 30, 2022. CI’s principal asset management businesses are CI Global Asset Management (CI Investments Inc.) and GSFM Pty Ltd., and it operates in wealth management in Canada through CI Assante Wealth Management (Assante Wealth Management (Canada) Ltd.), CI Private Counsel LP, Aligned Capital Partners Inc., Northwood Family Office Ltd., CI Direct Investing ( WealthBar Financial Services Inc.) and CI Investment Services Inc.
CI’s US wealth management businesses include Barrett Asset Management, LLC, Balasa Dinverno Foltz LLC, Bowling Portfolio Management LLC, Brightworth, LLC, BRR OpCo, LLC (Budros, Ruhlin & Roe), The Cabana Group, LLC , Corient Capital Partners, LLC , CPWM, LLC (Columbia Pacific Wealth Management), Columbia Pacific Advisors, LLC, Congress Wealth Management LLC, Dowling & Yahnke, LLC, Doyle Wealth Management, LLC, Galapagos Partners, LP, GLASfunds, LLC, Gofen & Glossberg, LLC, Matrix Capital Advisors, LLC, McCutchen Group LLC, OCM Capital Partners, LLC, Portola Partners Group LLC, Radnor Financial Advisors, LLC, RegentAtlantic Capital, LLC, The Roosevelt Investment Group, LLC, RGT Wealth Advisors, LLC, RH Bluestein & Co., Segall Bryant & Hamill, LLC, Stavis & Cohen Private Wealth, LLC and Surevest LLC.
This press release contains forward-looking statements regarding anticipated future events, results, circumstances, performance or expectations regarding CI Financial Corp. (“CI”) and its products and services, including its business operations, strategy and financial performance and condition. Forward-looking statements are generally identified by words such as “believe”, “expect”, “anticipate”, “plan”, “anticipate”, “intend”, “estimate”, “objective”, “plan” and “project”. and similar references to future periods, or conditional verbs such as “will”, “may”, “should”, “could”, or “would”. These statements are not historical facts, but rather represent management’s beliefs regarding future events, many of which, by their nature, are inherently uncertain and beyond management’s control, including the ability to maximize purchases of the OPRA. Although management believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions, these statements involve risks and uncertainties. Important factors and assumptions applied in reaching the conclusions contained in these forward-looking statements include that the investment fund industry will remain stable and that interest rates will remain relatively stable. Factors that could cause actual results to differ materially from expectations include, but are not limited to, general economic and market conditions, including interest and currency exchange rates, global financial markets, changes in government regulations or tax laws, industry competition, technological developments and other factors described or discussed in CI’s disclosure documents filed with applicable securities regulatory authorities from time to time. The foregoing list is not exhaustive and the reader is urged to carefully consider these and other factors and not to place undue reliance on any forward-looking statements. Except as specifically required by applicable law, CI undertakes no obligation to update or modify any forward-looking statement after the date it is made, whether to reflect new information, future events or otherwise.