Cannapany on April 1, 2020 No Comments
The company believes its current share price doesn’t properly reflect its value
Canopy Rivers Inc. doesn’t think it’s properly represented on the stock market. The cannabis venture capital firm recognizes that the share price currently listed does not reflect the company’s better financial position and has presented a normal course issuer bid (NCBI) request to the Toronto Stock Exchange (TSX). This NCIB request is a reflection of the company’s position regarding Canopy Rivers’ underlying value and all the future prospects, and would allow the company to buy back large amounts of its stock.
“With our strong cash position, launching the NCIB gives us the flexibility to purchase back our stock,” said Narbé Alexandrian, President & CEO, Canopy Rivers. “However, we continue to have a robust deal pipeline and maintain our focus on making investments that we believe will generate value for our shareholders.”
The Toronto Stock Exchange approved the NCIB to purchase up to 10,409,961 subordinated voting shares, which represent at least 10% of the company’s current public stock. The company will have a 12-month period to complete this purchase as of April 2, 2020, so the expiration date was set for April 1, 2021. The total outstanding subordinated voting shares issued is 155,676,025.
The TSX has certain guidelines for this process. The shares need to be purchased through TSX facilities or alternative Canadian trading systems. All daily purchases that fall under NCIB deals are limited to a maximum of 70,653 subordinated voting shares. This amount was calculated based on 25% of the average daily trading volume of these shares in a period reported from September 9, 2019, to February 29,2020.
Now Canopy Rivers has created a plan that includes its own broker that will be in charge of repurchasing the shares. As long as it stays within the limits, the company can decide how many shares will be purchasing and how often. All subordinated voting shares purchased under NCIB agreements will be canceled.
Congratulation!