RE:Belgravia Hartford Announces Intended Normal Course Issuer BIt means they may, or may not buy back up to 5% of the outstanding shares that are on the market.
They have nearly half a BILLION shares oustanding (431 million currently, plus they have 131 million shares they can issue to raise more money for themselves).
So.....instead of buying shares in more companies and increasing the value of the portfolio, they are saying they might spend the money on buying up their own shares and taking them off the market.
NCIB only allows for maximum 5% annual buybacks. Most companies NEVER buy back their maximum allowance of shares.
Also, you can guarantee Belgravia will NOT buy back 5% of their shares, as they are entangled in lawsuits with
--Zonetail, Tartisan Nickle, & water royalties from pre 2017
Belgravia would need to sell shares of their current holdings to buy back their own blgv shares, but by doing that, the portfolio would suffer because they would own less shares of other companies, and shareholders would flee even more than they have.
Also, blgv said they want to aquire a company to go private, and grow it from there. Well you dont buy shares in your own company when you are planning to buy a company lol.
When a penny stock offers to buy back their own shares, it is simply a marketing to
1) Get exposure, as NCIBs make the news
2) Entice investors to buy into their company
3) Put false hope into current investors
Investers know that a NCIB on a penny stock is like the elusive Boogeyman. You hear about it occassionally, but you never see it.
When reputible companies buy back shares (cn rail, brookfield, thomson reuters all in the past year), then their stock price goes up, as strong companies can afford to buy their shares....they also dont have half a BILLION shares outstanding.
If Belgravia was seriously interested in lowering share count, you will see a reverse share split of 10 to 1 or 100 to 1 (which is more like it as they have half a BILLION shares outstanding)
So.....long story short....their NCIB wont happen now, next month or even next year.