Coloured Ties Capital begins $3.37-million SIB
2022-12-13 10:40 ET - News Release
Ms. Nancy Boufeas reports
COLOURED TIES ANNOUNCES COMMENCEMENT OF SUBSTANTIAL ISSUER BID
Coloured Ties Capital Inc. has begun and is detailing the terms of its previously announced substantial issuer bid, under which the company will offer to purchase for cancellation up to $3,375,000 of its outstanding common shares. The offer commences today and will expire on Jan. 17, 2023, unless extended, varied or withdrawn. Settlement will occur on or about Jan. 19, 2023.
The offer is being made by way of a modified Dutch auction, which will allow shareholders who choose to participate in the offer to individually select the price, with a range of not less than 55 cents per share and not more than 65 cents per share (in increments of one cent per share), at which they are willing to sell their shares. Upon expiry of the offer, the company will determine the lowest purchase price (which will not be more than 65 cents per share and not less than 55 cents per share) that will allow it to purchase the maximum number of shares tendered to the offer, and not withdrawn, having an aggregate purchase price not exceeding $3,375,000.
Shareholders who wish to participate in the offer will be able to do so through (i) auction tenders in which they specify the number of shares being tendered at a specific price per share, or (ii) purchase price tenders in which they agree to have a specified number of shares purchased at the purchase price to be determined pursuant to the auction and have their shares considered as having been tendered at the minimum price of 55 cents for the purposes of determining the purchase price. Shareholders who validly deposit shares without specifying the method in which they are tendering their shares will be deemed to have made a purchase price tender. Shares can be tendered into the offer through your broker and through Computershare. Simply instruct your broker how many shares you wish to tender and at what price (maximum 65 cents/share), and your broker will make the offer thru Computershare.
If the offer would result in an aggregate purchase price of more than $3,375,000, the company will purchase a pro-rated portion of the shares so tendered pursuant to auction tenders at or below the purchase price and purchase price tenders (after giving preferential treatment to odd lot holders).
The offer is optional for all shareholders, who are free to choose whether to participate, how many shares to tender and, in the case of auction tenders, at what price to tender within the specified range. Any shareholders who do not deposit their shares (or whose shares are not repurchased under the offer) will realize a proportionate increase in their equity interest in the company, to the extent that shares are purchased under the offer.
The offer will not be conditional upon any minimum number of shares being tendered. The offer will, however, be subject to other conditions and the company reserves the right, subject to applicable laws, to withdraw or amend the offer, if, at any time prior to the payment of deposited shares, certain events occur. The formal offer to purchase and issuer bid circular, letter of transmittal and notice of guaranteed delivery containing the terms and conditions of the Offer and instructions for tendering shares have been filed with the applicable securities regulators and mailed to registered shareholders. The offer documents are available under the company's SEDAR profile.
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