(TheNewswire)
Kelowna, British Columbia – TheNewswire - January 26 , 2021 – Decisive Dividend Corporation (TSXV:DE) (the “ Corporation ” or “ Decisive ”) announced today that it has received approval from the TSX Venture Exchange (the “ TSXV ”) to conduct a normal course issuer bid (the “ NCIB ”) to purchase up to an aggregate of 581,674 common shares of Decisive (“ Common Shares ”), representing five percent (5%) of the 11,633,496 issued and outstanding Common Shares on the date hereof.
Decisive sought approval of the NCIB because it believes that, from time to time, the market price of the Common Shares may not fully reflect the value of the Common Shares. Decisive believes that, in such circumstances, the purchase of Common Shares represents an attractive use of its cash resources, from which Decisive intends to fund purchases under the NCIB.
James Paterson, Chief Executive Officer of Decisive, noted:
“Given the continuing economic uncertainty surrounding the ongoing impact of COVID-19 and the resurgence in cases across North America, management has focused on preserving our liquidity and strengthening our balance sheet. To that end we reduced debt levels in 2020 by $3.8 million and as of today, we had no amounts drawn on our revolving term loan and $10.6 million in cash plus available credit on the revolving loan.
To the extent that the current economic uncertainty subsides earlier than anticipated, our continually improving financial strength gained through 2020 and 2021 could be applied to paying down debt further, making an acquisition from our healthy pipeline of possible targets, to further capital expenditures in our existing businesses, and/or making share purchases under the NCIB.
Our businesses have been performing well given the circumstances and should the recent positive momentum in our operations continue and not be hindered by the pandemic or unforeseen economic headwinds, we anticipate being in a position to consider reinstating dividend payments at some point in the first half of 2021, as we remain committed to our dividend strategy over the long-term.”
Purchases of Common Shares under the NCIB may be made during the period commencing on January 27, 2021 and ending on January 26, 2022, or an earlier date in the event that the Corporation purchases the maximum number of the Common Shares available under the NCIB. Decisive reserves the right to terminate the NCIB at any time. Common Shares may be purchased through the facilities of the TSXV or such other permitted means (including through alternative trading systems in Canada) at prevailing market prices. All Common Shares acquired directly by the Corporation under the NCIB will be cancelled.
Decisive has engaged BMO Nesbitt Burns Inc. to act as the broker through which the NCIB will be conducted.
Decisive also announced that the Board has determined that:
(i) for the foreseeable future it will use stock options as the sole form of securities-based compensation for its directors, officers, employees and service providers;
(ii) given that Decisive has been unable to issue additional deferred share units (DSUs) since its 2020 annual general meeting as a result of not receiving disinterested shareholder approval to do so, all 25,234 outstanding DSUs will be redeemed for Common Shares, which has been approved by the TSXV.
At its 2021 annual general meeting of shareholders, Decisive intends to only seek shareholder approval of a 10% “rolling” stock option plan, which it has had in place since its inception.
About Decisive Dividend Corporation
Decisive Dividend Corporation is an acquisition-oriented company, focusing on the manufacturing sector. The Corporation uses a disciplined acquisition strategy to identify already profitable, established companies that have strong management teams, generate steady cash flow, operate in non-cyclical markets, and have opportunity for future growth.
For more information on Decisive, or to sign up for email notifications of Corporation press releases, please visit www.decisivedividend.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Rick Torriero, Chief Financial Officer
#201, 1674 Bertram Street
Kelowna, BC V1Y 9G4
Telephone: (250) 870-9146
Cautionary Statements
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange ) accepts responsibility for the adequacy or accuracy of the contents of this News Release .
Forward- Looking Statements
Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on management’s current beliefs, assumptions and expectations as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this press release contains forward-looking information relating to potential future debt repayments, potential future acquisitions, potential future capital expenditures, the potential purchase of Common Shares pursuant to the NCIB , and the consideration of a possible reinstatement of the Corporation's monthly dividend in the first half of 2021. There can be no assurance as to the amount of future debt repayments or capital expenditures, if any, or that the Corporation will identify and/or close an acquisition if identified, or that Decisive will purchase Common Shares pursuant to the NCIB or the purchase price paid by Decisive for any Common Shares that it purchases , or that the board of directors of the Corporation will declare a dividend or reinstate a regular dividend policy in the future. The forward-looking information contained in this release is made as of the date hereof and the Corporation is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
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