Coloured Ties shares quoted on OTC Pink Market
2023-06-12 17:08 ET - News Release
Mr. Kal Malhi reports
COLOURED TIES RECEIVES FINRA CLEARANCE LETTER AND INTENDS TO REPURCHASE COMMON SHARES
Coloured Ties Capital Inc. has received notice that its market-maker in the United States had received clearance from FINRA to initiate quotation, and thus, its common shares are now quoted on the OTC Pink Market maintained by OTC Markets Inc. as APEOF. The company will provide an update on its DTC (Depository Trust Company) eligibility and trading symbol change in the coming weeks.
In addition, the company announces it plans to repurchase a portion of its issued and outstanding common shares and cancel those shares.
The company's board of directors has authorized a substantial issuer bid pursuant to which the company will offer to purchase for cancellation up to $9-million of its shares. The offer is expected to commence on or about July 3, 2023, provided the company obtains approval from the exchange.
The offer is proceeding by way of a modified Dutch auction within a price range not less than 92 cents per share and not more than $1 per share (in increments of one cent within that range). The tender process allows shareholders who wish to participate in the offer to be able to do so through: (i) auction tenders in which they will specify the number of shares being tendered at a price of not less than the lower limit and not more than the higher limit (in increments of one cent within that range); or (ii) purchase price tenders in which they will not specify a price per share, but will rather agree to a specified number of shares purchased at the purchase price to be determined by auction tenders. If shares with an aggregate purchase price of more than $9-million are properly tendered and not properly withdrawn, the company will purchase the shares on a pro rata basis except that odd lot tenders (of holders beneficially owning fewer than 100 shares) will not be subject to proration.
At present, there are 17,369,552 common shares outstanding. If the shares are purchased at 92 cents per share, the minimum purchase price pursuant to the offer, the maximum number of shares that will be purchased pursuant to the offer is 9,782,608 shares. If the shares are purchased at $1 per share, the maximum purchase price pursuant to the offer, the maximum number of shares that will be purchased pursuant to the offer is nine million shares.
The company's board of directors believes that repurchasing the shares represents an advisable use of Coloured Ties' financial resources and is in the best interest of the company's shareholders. The offer provides the company's shareholders with an opportunity to realize on all or a portion of their investment in the company.
Details of the offer, including the full terms and conditions of the offer and instructions for tending shares to the offer, will be included in the formal offer to purchase and issuer bid circular and other related documents, which are expected to be mailed to shareholders, filed with securities regulators and made available shortly on SEDAR. The offer will not be conditional on any minimum number of shares being tendered although it is subject to various other conditions that are typical for a transaction of this nature.
Neither the company, nor its board of directors makes any recommendation to shareholders as to whether to tender or refrain from tendering shares to the offer. Shareholders are strongly encouraged to review the offer documents carefully and to consult with their financial and tax advisers prior to making any decision with respect to the offer.