Canadian cannabis extraction company Ayurcann Holdings Corp. (CSE:AYUR) (OTCQB:AYURF) (FSE: 3ZQ0) is seeking to initiate a normal course issuer bid through the facilities of the Canadian Securities Exchange or alternative trading systems.
What Happened?
Under the NCIB, the corporation intends to acquire up to 6.08 million common shares in the capital of the corporation, representing approximately 5% of its issued and outstanding common shares. As of February 28, 2022, there were 121.72 million common shares issued and outstanding.
On any given day, during the NCIB, the corporation may only purchase up to 15,000 common shares, which is equivalent to 25% of the average daily trading volume of 60,000 calculated based on the trading volumes on the CSE over the past 12 months and may purchase once per calendar week, in a block trade, a greater number of common shares.
Purchases under the NCIB may commence as of March 1, 2022 and will end on the earlier of:
- February 28, 2023.
- The date on which the corporation has purchased the maximum number of common shares to be acquired under the NCIB.
The corporation may terminate the NCIB earlier if it feels it is appropriate to do so.
Ayurcann has appointed Canaccord Genuity Corp. to conduct the NCIB. The purchase and payment of the common shares will be made in accordance with the requirements of the CSE and applicable securities laws.
What's Next?
The actual number of common shares purchased, timing of purchases and share price will depend upon market conditions at the time and securities law requirements. All common shares acquired will be returned to treasury and cancelled.
The company’s board of directors believes that the market price of the common shares may from time to time not reflect the underlying value of the company, specifically its growth opportunities, and that the proposed purchasing of its common shares is in the best interests of the company and represents an appropriate use of corporate funds.
It is expected that any purchases made by the company could also enhance value and liquidity for its shareholders.
Photo: Courtesy of energepic.com from Pexels
