On Tuesday, January 24, the Great Canadian Gaming Corporation announced its intention to renew a normal course issuer bid for up to 5,811,197 of its common shares, representing approximately 10 per cent of Great Canadian's common shares in the public float
. Purchases will be made subject to opportunities within the market.
As at January 20, 2012, there were 82,539,058 common shares of Great Canadian outstanding. Purchases will be by way of open market purchases through the facilities of the Toronto Stock Exchange, and other Canadian market places, and payment for the shares will be in accordance with the TSX's by-laws and rules. No purchases will be made other than by means of open market transactions during the term of the normal course issuer bid and conducted at the market price at the time of acquisition. All shares purchased by Great Canadian will be subsequently cancelled. Great Canadian believes that this normal course issuer bid will assist in managing its balance of debt and equity for the purpose of increasing long-term shareholder value.
"This share repurchase program is an important tool for taking advantage of Great Canadian's secure and flexible financial position," stated Rod Baker, Great Canadian's president and chief executive officer. "The normal course issuer bid will be employed opportunistically, alongside [Great Canadian’s] needs for operational cash, in order to improve shareholder value."
Great Canadian received approval from the TSX to commence this bid on January 27, 2012. The bid will end on January 26, 2013 or earlier if the number of shares sought in the issuer bid have been obtained. Great Canadian reserves the right to terminate the bid earlier if it feels it is appropriate to do so. Pursuant to TSX policies, daily purchases made by Great Canadian will not exceed 37,069 common shares or 25 per cent of the prior six-month average daily trading volume of 148,277 common shares on the TSX, subject to certain prescribed exceptions.
To the knowledge of Great Canadian, no director, senior officer or other insider of the company currently intends to sell any common shares under this bid. However, sales by such persons through the facilities of TSX may occur if the personal circumstances of any such person change or any such person makes a decision unrelated to these normal course purchases. The benefits to any such person whose shares are purchased would be the same as the benefits available to all other holders whose shares are purchased.
Since January 27, 2011, Great Canadian purchased 1,479,600 common shares under the current normal course issuer bid that will expire on January 26, 2012 at a volume weighted average price of $7.16.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless the securities are registered in the United States or an exemption from such registration is available.
(Great Canadian)