Conifex announced its intention to begin a normal course issuer bid (“NCIB”) for its common shares over the next year. Starting December 1, Conifex may start purchasing up to 10% of the “public float” of its common shares.
The company’s news release says that “Securities acquired will be purchased at the market price up to a daily maximum of 12,500 Common Shares.” The statement says that the company is entering into the NCIB “because it believes that from time to time, the market price of the Common Shares may not reflect the value of Conifex’s business and its future prospects.”
What is a Normal-Course Issuer Bid (NCIB)?
Investopedia.com: “A normal-course issuer bid is a Canadian term for a public company’s repurchase of its own stock in order to cancel it. A company is allowed to repurchase between 5% and 10% of its shares depending on how the transaction is conducted.” An NCIB is commonly used to raise cash, improve the share price, ward off a takeover, or some combination of all of these.
News release (Nov 26): https://www.conifex.com/main/wp-content/uploads/2020/11/Conifex-NR.Conifex-Announces-Normal-Course-Issuer-Bid.pdf
THE MACKTOWN BUZZETTE 