MONTREAL, Sept. 21, 2021 (GLOBE NEWSWIRE) -- Stingray Group Inc (TSX: RAY.A; RAY.B) (“Stingray”), a leading music, media and technology company, today announced that the Toronto Stock Exchange (“TSX”) has approved the renewal of its normal course issuer bid (“NCIB”), authorizing Stingray to repurchase up to an aggregate 3,222,901 subordinate voting shares and variable subordinate voting shares (collectively, “Subordinate Shares”), representing approximately 10% of the public float of Subordinate Shares as at September 13, 2021.
The net average daily trading volume for the six-month period preceding September 1, 2021 represents 48,521 Subordinate Shares. In accordance with TSX requirements, Stingray is entitled to purchase, on any trading day, up to a total of 12,130 Subordinate Shares representing 25% of this average daily trading volume.
Stingray believes that the purchase of up to 3,222,901 Subordinate Shares under the NCIB is an appropriate use of its funds and a desirable investment for Stingray and, therefore, would be in the best interests of Stingray. By making such repurchases, the number of Subordinate Shares in circulation will be reduced and the proportionate interest of all remaining shareholders in the share capital of Stingray will be increased on a pro rata basis.
Stingray may repurchase Subordinate Shares on the open market through the facilities of the TSX as well as through other alternative Canadian trading systems, from time to time, over the course of twelve months commencing September 27, 2021 and ending at the latest on September 26, 2022.
The actual number of Subordinate Shares purchased under the NCIB, the timing of purchases and the price at which the Subordinate Shares are bought will depend upon management discretion based on factors such as market conditions. All shares repurchased under the NCIB will be cancelled upon their repurchase.
In connection with the NCIB, Stingray has established an automatic securities purchase plan with a designated broker whereby shares may be repurchased at times when such purchases would otherwise be prohibited pursuant to regulatory restrictions or self-imposed blackout periods. Under the automatic securities purchase plan, before entering a self-imposed blackout period, Stingray may, but is not required to, ask the designated broker to make purchases under the NCIB. Such purchases will be made at the discretion of the designated broker, within parameters established by Stingray prior to the blackout periods. Outside the blackout periods, purchases are made at the discretion of Stingray’s management. The automatic securities purchase plan constitutes an “automatic plan” for purposes of applicable Canadian securities legislation and has been pre-cleared by the TSX.
As of September 13, 2021, Stingray had repurchased a total of 2,508,180 Subordinate Shares pursuant to its last NCIB (which will expire on September 24, 2021 and allows the repurchase of up to 3,485,155 Subordinate Shares) at a weighted average price of $6.9355 per share. As of the close of business on September 13, 2021, there were an aggregate of 53,259,202 Subordinate Shares issued and outstanding.
https://www.globenewswire.com/news-release/2021/09/21/2300383/0/en/Stingray-Renews-Its-Normal-Course-Issuer-Bid.html