TORONTO--(BUSINESS WIRE)--The Westaim Corporation (“Westaim” or the “Company”) (TSXV: WED) is pleased to announce that the TSX Venture Exchange (the "Exchange" or “TSXV”) has accepted a notice filed by the Company of its intention to make a normal course issuer bid (the "Bid") to be transacted through the facilities of the Exchange.
The board of directors of the Company (the "Board") believes that the recent market prices of the Company's common shares (the "Shares") do not properly reflect the underlying value of such Shares. As a result, depending upon future price movements and other factors, the Board believes that the purchase of the Shares would be a desirable use of corporate funds in the best interests of the Company and its shareholders. Furthermore, the purchases are expected to benefit all persons who continue to hold Shares by increasing their equity interest in the Company when such repurchased Shares are cancelled.
The notice provides that the Company may, during the 12-month period commencing October 1, 2021 and ending September 30, 2022, purchase up to 11,208,044 Shares in total, representing approximately 10% of Westaim’s public float of Shares as at the close of business prior to the date hereof. In accordance with the policies of the Exchange, the Company may not purchase more than 2% of its issued and outstanding Shares during any 30-day period, which as of the date hereof represents 2,863,734 Shares.
The price which the Company will pay for any such Shares will be the prevailing market price at the time of acquisition. The actual number of Shares to be purchased pursuant to the Bid and the timing of any such purchases will be determined by management of the Company. Purchases under the Bid will be made from time to time by Stifel GMP on behalf of the Company.
All Share purchases will be made on the open market through the facilities of the Exchange and will be purchased for cancellation. The funding for any purchase pursuant to the Bid will be financed out of the working capital of the Company. To the knowledge of the Company, no director, senior officer or other insider of the Company or any of their associates currently intends to sell any Shares under the Bid, however sales by such persons through the facilities of the Exchange or any other available market or alternative trading system may occur if the personal circumstances of any such persons change or if any such persons make 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.