MISSISSAUGA, Ontario, Nov. 08, 2018 (GLOBE NEWSWIRE) — goeasy Ltd. (TSX: GSY) (“goeasy” or the “Company”), a leading full-service provider of goods and alternative financial services that provides everyday Canadians a path to a better tomorrow, today announced the acceptance by the Toronto Stock Exchange (the “TSX”) of goeasy’s Notice of Intention to Make a Normal Course Issuer Bid (the “NCIB”).
Pursuant to the NCIB, goeasy proposes to purchase, from time to time, if it is considered advisable, up to an aggregate of 555,000 Common Shares, being approximately 5% of goeasy’s public float as of October 30, 2018. As at October 30, 2018, goeasy had 14,803,919 common shares issued and outstanding and the average daily trading volume for the six months prior to October 31, 2018 was 36,209.
Daily purchases will be limited to 9,052 Common Shares, representing 25% of the average daily trading volume, other than block purchase exemptions. The purchases may commence on November 13, 2018 and will terminate on November 12, 2019 or on such earlier date as goeasy may complete its purchases pursuant to the Notice of Intention. The NCIB will be conducted through the facilities of the TSX or alternative trading systems, if eligible, and will conform to their regulations.
Purchases under the NCIB will be made by means of open market transaction or other such means as a security regulatory authority may permit, including pre-arranged crosses, exempt offers and private agreements under an issuer bid exemption order issued by a securities regulatory authority. The price that goeasy will pay for any Common Shares will be the market price of such shares at the time of acquisition, unless otherwise permitted under applicable rules.
The Board of Directors of goeasy believes that the proposed purchases are in the best interests of the Company and are a desirable use of corporate funds. All Common Shares purchased by goeasy pursuant to the NCIB will be cancelled.
“We have experienced a recent decline in the Company’s share price and have decided to commence an NCIB at this time as we believe that the value of our business is not fully reflected in our current share price. As such we will make purchases under this NCIB on an opportunistic basis when we feel that the shares of the Company are undervalued” said David Ingram, goeasy’s Chief Executive Officer.
The Company also announces that it has entered into an issuer automatic purchase plan agreement (the “Plan”) in respect of the NCIB. Cormark Securities Inc. has been appointed as the broker firm (the “Broker”) responsible for making purchases of Common Shares pursuant to the Plan. Under the Plan, the Broker will have sole discretion to purchase Common Shares pursuant to the NCIB during trading black-out periods established under the Company’s Insider Trading Policy, subject to the price limitations and other terms of the Plan and the rules of the TSX. The Company may instruct the Broker to make specific purchases and suspend or terminate the Plan, provided in each case that the Company certifies to the Broker that it is not in possession of any material undisclosed information and such request is otherwise in compliance with the terms of the Plan.
goeasy Ltd. offers leasing and lending services in the alternative financial services market and provides everyday Canadians a path to a better tomorrow, today. goeasy Ltd. serves its customers through two key operating divisions, easyfinancial and easyhome. easyfinancial is a non-prime consumer lending business that bridges the gap between traditional financial institutions and costly payday loans. easyfinancial offers a range of unsecured and secured personal instalment loans supported by a strong central credit adjudication process and industry leading risk analytics. easyhome is Canada’s largest lease-to-own company, offering brand-name household furniture, appliances and electronics to consumers under weekly or monthly leasing agreements through both corporate and franchise stores. Both operating divisions of goeasy Ltd. offer the highest level of customer service and enable customers to transact through an omni channel model that includes over 400 stores and branches across Canada and digital eCommerce enabled platforms.
goeasy Ltd.’s. common shares are listed for trading on the TSX under the trading symbol “GSY” and goeasy’s convertible debentures are traded on the TSX under the trading symbol “GSY-DB”. goeasy is rated BB- with a stable trend from S&P and Ba3 with a stable trend from Moody’s. For more information, visit www.goeasy.com.
For further information contact:
Chief Executive Officer