TORONTO, May 24, 2023 (GLOBE NEWSWIRE) — Timbercreek Financial Corp. (TSX: TF) (the “Company”) announced today that it has obtained the approval of the Toronto Stock Exchange (the “TSX”) to commence a normal course issuer bid (the “NCIB”) with respect to its common shares (the “Shares”). The NCIB will commence on May 26, 2023 and will terminate on the earlier of May 25, 2024 or the date on which the Company has purchased the maximum number of Shares permitted under the NCIB.
Under the NCIB, the Company may, over a 12-month period commencing on May 26, 2023, purchase in the normal course through the facilities of the TSX in accordance with its rules or through alternative Canadian trading platforms up to a regulatory maximum of 8,305,467 Shares, such amount representing 10% of the public float of the Shares issued and outstanding as of May 15, 2023. Furthermore, subject to certain exemptions for block purchases, the maximum number of Shares that the Company may acquire on any one trading day is 30,248 Shares, such amount representing 25% of the average daily trading volume (“ADTV”) of the Shares for the six calendar months prior to the start of the NCIB, being 120,994 Shares. As of May 15, 2023, there were 83,775,016 Shares issued and outstanding.
Under the normal course issuer bid which commenced on May 26, 2022 and terminates on May 25, 2023 (the “2022 NCIB”), the Company was authorized to purchase up to 8,330,591 Shares and purchased 230,000 Shares on the open market at a volume weighted average price of $7.35 per Share. Purchases made under the 2022 NCIB were made either through the facilities of the TSX in accordance with its rules or through alternative Canadian trading platforms. All Shares purchased under the 2022 NCIB by the Company were cancelled.
The price which the Company will pay for any Shares under the NCIB will be the market price at the time of acquisition. During the period of the NCIB, the Company may make purchases under the NCIB by means of open market transactions or otherwise as permitted by the TSX. All purchases under the NCIB will be purchased on the open market through the facilities of the TSX and alternative Canadian trading platforms at the prevailing market price at the time of such transaction. Any Shares purchased by the Company will be cancelled. National Bank Financial will conduct the bid on behalf of the Company.
The Company believes that the market price of its Shares may not, from time to time, accurately reflect their underlying value, making the purchase of Shares an attractive investment and an advantageous use of the Company’s available funds. The Company expects that the purchase of Shares will benefit remaining shareholders by increasing their equity interest in the Company’s assets.
There can be no assurance as to the precise number of Shares that will be repurchased under the NCIB or the aggregate dollar amount of the Shares purchased. The Company may discontinue purchases at any time, subject to compliance with applicable regulatory requirements.
For information, please visit www.timbercreekfinancial.com.
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Chief Executive Officer
About the Company
Timbercreek Financial is a leading non-bank, commercial real estate lender providing shorter-duration, structured financing solutions to commercial real estate investors. Our sophisticated, service-oriented approach allows us to meet the needs of borrowers, including faster execution and more flexible terms that are not typically provided by Canadian financial institutions. By employing thorough underwriting, active management and strong governance, we are able to meet these needs while targeting strong risk-adjusted returns for investors.
Certain statements contained in this news release may contain projections and “forward looking statements” within the meaning of that phrase under Canadian securities laws. When used in this news release, the words “may”, “would”, “should”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect”, “objective” and similar expressions may be used to identify forward looking statements. By their nature, forward looking statements reflect the Company’s current views, beliefs, assumptions and intentions are subject to certain risks and uncertainties, known and unknown, including, without limitation, those risks disclosed in the Company’s public filings. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by these forward looking statements. The Company does not intend to nor assumes any obligation to update these forward looking statements whether as a result of new information, plans, events or otherwise, unless required by law.