TORONTO (June 16, 2020) – CI Financial Corp. (“CI”) (TSX: CIX) announced today that the Toronto Stock Exchange (“TSX”) has accepted its Notice of Intention to make a Normal Course Issuer Bid and Automatic Securities Purchase Plan (“ASPP”).
CI intends to purchase up to 19,676,318 of its common shares by way of a Normal Course Issuer Bid, through the facilities of the TSX and alternative Canadian trading systems. Common shares may be purchased by CI or purchased by a trustee, to satisfy obligations under equity-based compensation plans for CI. All common shares purchased by CI (but not those purchased by such a trustee) will be cancelled. The 19,676,318 common shares represent 10% of the total public float for CI. As of June 12, 2020, there were 216,717,437 issued and outstanding common shares of CI.
It is expected that the purchases under the Normal Course Issuer Bid may commence on June 18, 2020 and will terminate on June 17, 2021, or on such earlier date as CI completes its purchases or provides notice of termination. Purchases will be effected through the facilities of the TSX at prevailing market prices, or such other means as may be permitted by the TSX, and through alternative Canadian trading systems. CI is permitted to purchase up to 191,027 common shares daily, being 25% of the average daily trading volume of the common shares for the six months ended as of May 31, 2020 (764,110).
CI believes that the market price of the common shares may, at certain times throughout the duration of the Normal Course Issuer Bid, be undervalued based on CI’s financial performance and prospects, and accordingly, the Board of Directors are of the opinion that the purchase of common shares is an appropriate use of funds in order to increase shareholder value.
Under its current Normal Course Issuer Bid, CI obtained approval to purchase up to 21,728,299 of its common shares, of which CI and the trustee purchased 21,644,387 at a weighted average price of $19.87 per common share between June 18, 2019 and June 12, 2020, through the facilities of the TSX and alternative Canadian trading systems.
CI has entered into an ASPP with National Bank Financial Inc. (“NBF”) to allow for the purchase of common shares under the NCIB at times when CI would ordinarily not be permitted to purchase its common shares due to regulatory restrictions or self-imposed blackout periods.
Pursuant to the ASPP, prior to entering into a blackout period, CI may, but is not required to, instruct NBF to make purchases under the NCIB in accordance with the terms of the ASPP. Such purchases will be determined by NBF in its sole discretion based on parameters established by CI prior to the blackout period in accordance with the rules of the TSX, applicable securities laws and the terms of the ASPP. The ASPP has been pre-cleared by the TSX and will be implemented effective June 18, 2020.
Outside of the pre-determined blackout periods, common shares may be purchased under the NCIB based on the discretion of CI’s management, in compliance with TSX rules and applicable securities laws. All repurchases made under the ASPP will be included in computing the number of common shares purchased under the NCIB.
About CI Financial
CI Financial Corp. (TSX: CIX) is an independent company offering global asset management and wealth management advisory services. CI held approximately C$172 billion in fee-earning assets as of May 31, 2020. CI’s primary asset management businesses are CI Investments Inc. and GSFM Pty Ltd., and it operates in wealth management through Assante Wealth Management (Canada) Ltd., CI Private Counsel LP, WealthBar Financial Services Inc., BBS Securities Inc., One Capital Management, LLC and Surevest LLC. Further information is available at www.cifinancial.com.
For further information:
Douglas J. Jamieson
Executive Vice-President and
Chief Financial Officer
CI Financial Corp.
(416) 364-1145