TORONTO, Jan. 23,
2023 /CNW/ - Chesswood Group Limited ("Chesswood")
(TSX: CHW) announced today that the Toronto Stock Exchange (the
"TSX") has accepted its notice of intention to conduct a normal
course issuer bid (the "NCIB") to enable it to purchase up to
1,033,781 of its 17,802,179 common shares ("Common
Shares") outstanding, representing approximately 10 per cent of
Chesswood's public float of 10,337,818 Common Shares as of
January 13, 2023. The average
daily trading volume of Chesswood for the past six months was
5,272, and a maximum of 1,318 Common Shares (being approximately
25% of the average daily trading volume during the preceding six
months) may be purchased by Chesswood on any one day under the
NCIB, except where purchases are made in accordance with "block
purchases" exemptions under applicable TSX policies.
The NCIB will commence on January 25,
2023, and will terminate on the earlier of January 24, 2024, the date Chesswood
completes its purchases pursuant to the notice of intention to make
a normal course issuer bid filed with the TSX or the date of notice
by Chesswood of termination of the bid.
Chesswood previously sought and received approval from the TSX
to purchase up to 980,230 of its outstanding Common Shares in
connection with its existing normal course issuer bid. Chesswood
repurchased 453,612 of its shares under the existing normal course
issuer bid at an average cost of $12.57 per share. Chesswood believes that the
market price of the Common Shares at certain times may be
attractive and that the purchase of Common Shares from time to time
would be an appropriate use of its funds in light of potential
benefits to remaining shareholders.
Chesswood also announces that on January
20, 2023 it entered into an automatic share purchase plan
agreement (the "ASPP") with a broker to allow for the purchase of
Common Shares under the NCIB at times when Chesswood normally would
not be active in the market due to regulatory restrictions or
self-imposed trading blackout periods. Before entering into a
blackout period, Chesswood may, but is not required to, instruct
the designated broker to make purchases under the NCIB in
accordance with the terms of the ASPP. Such purchases will be
determined by the broker in its sole discretion based on parameters
established by Chesswood prior to the blackout period in accordance
with TSX rules and the terms of the ASPP. The terms of the ASPP
have been pre-cleared by the TSX. Outside of these pre-determined
blackout periods, Common Shares will be purchased in accordance
with management's discretion.
Chesswood will make purchases on the open market through the
facilities of the TSX in accordance with the rules and policies of
the TSX or alternative trading systems in Canada. The price
that Chesswood will pay for any such Common Shares will be the
market price of such Common Shares on the TSX at the time of
acquisition. Common Shares purchased under the bid will be
cancelled following purchase.
About Chesswood Group
Limited
Through three wholly-owned operating subsidiaries in
the United States and five
operating subsidiaries in Canada,
two of which are wholly-owned, Chesswood Group Limited is a North
American specialty finance company publicly traded on the Toronto
Stock Exchange. Colorado-based
Pawnee Leasing Corporation, founded in 1982, finances a highly
diversified portfolio of commercial equipment leases and loans
through relationships with over 600 brokers in the United States. Tandem Finance Inc.
provides financing in the U.S. through the equipment vendor
channel. Vault Credit Corporation, which through its predecessor
corporations, has been originating and servicing commercial
equipment leases and loans in Canada since 1996, specializes in equipment
leases and commercial loans across Canada, allowing for customizable financing
solutions while catering to a wide spectrum of credit tiers,
equipment types and sectors by offering industry-leading service
levels, experienced underwriters and account administrators. Vault
Credit operates through a nationwide network of more than 60
brokers. Vault Home Credit Corporation was launched in September 2021 and focuses on providing home
improvement and other consumer financing solutions in Canada. Rifco National Auto Finance
Corporation, with the mission to help Canadians own automobiles,
seeks to create sustainable long-term competitive advantages
through personalized partnerships with dealers, innovative
products, the use of industry-leading data and analytics, and
leading collection practices. Through Waypoint Investment Partners
Inc., a Toronto-based investment
manager and exempt market dealer, and Chesswood Capital Management
USA Inc., Chesswood Capital
Management provides private credit alternatives to Canadian and
U.S. investors seeking exposure to lease and loan receivables,
including those originated by Chesswood subsidiaries.
Based in Toronto, Canada,
Chesswood Group Limited's shares trade on the TSX under the symbol
CHW.
To learn more about Chesswood Group Limited, visit
www.ChesswoodGroup.com.
The websites of
Chesswood Group Limited's operating businesses are:
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www.PawneeLeasing.com
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www.TandemFinance.com
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www.VaultPay.ca
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www.VaultCredit.com
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www.Rifco.net
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www.WaypointInvestmentPartners.com
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NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER
REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION
CONTAINED HEREIN.
SOURCE Chesswood Group Limited