TORONTO, Nov. 17, 2020 /CNW/ - Corus Entertainment Inc. ("Corus" or the "Company") (TSX: CJR.B) announced today that the Company intends to file with the Toronto Stock Exchange ("TSX") a notice of intention to commence a normal course issuer bid ("NCIB") for its Class B non-voting shares, effectively renewing a previous normal course issuer bid which ended on November 11, 2020 for a one year period. If accepted by the TSX, the Company would be permitted under the NCIB to purchase for cancellation, through the facilities of the TSX and/or alternative Canadian trading systems, up to 5% of the public float (calculated in accordance with TSX rules) of the Company's issued and outstanding Class B non-voting shares during the 12 months following such TSX acceptance. The exact amount of Class B non-voting shares subject to the NCIB will be determined on the date of acceptance of the notice of intention by the TSX.
All Class B non-voting shares purchased by the Company under the NCIB will be purchased at prevailing market prices in accordance with the rules and policies of the TSX and applicable securities laws. The actual number of Class B non-voting shares that may be purchased, and the timing of any such purchases, will be determined by the Company, subject to the applicable terms and limitations of the NCIB (including any automatic repurchase plan adopted in connection therewith). All Class B non-voting shares acquired by the Company under the NCIB will be cancelled. Under its previous normal course issuer bid that commenced on November 12, 2019 to November 11, 2020, the Company purchased and cancelled an aggregate of 3,630,000 Class B non-voting shares at a weighted average price per share of $4.65.
The Company intends to commence the NCIB two trading days after TSX acceptance of the NCIB. The NCIB will terminate one year after its commencement, or earlier if the maximum number of Class B non-voting shares under the NCIB have been purchased. Although the Company has a present intention to acquire its Class B non-voting shares pursuant to the NCIB, the Company will not be obligated to make any purchases and purchases may be suspended by the Company at any time. The Company reserves the right to terminate the NCIB earlier if it feels it is appropriate to do so.
In connection with the NCIB program, the Company intends to enter into an automatic repurchase plan with its designated broker to allow for purchases of its Class B non-voting shares during certain pre-determined black-out periods, subject to certain parameters as to price and number of shares. Outside of these pre-determined black-out periods, shares will be repurchased in accordance with management's discretion, subject to applicable law.
The Company proposes to renew its NCIB because it believes that the market price of the Class B non-voting shares may not, from time to time, fully reflect their value and accordingly the purchase of the Class B non-voting shares would be in the best interest of the Company and an attractive and appropriate use of available funds.