TORONTO, ONTARIO--(Marketwired - Aug. 27, 2015) - This release corrects and replaces the one that was sent this morning at 9:26 am ET. The revised and updated release follows:
NOT FOR DISTRIBUTION TO U.S. WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Urbana Corporation ("Urbana") (URB.TO)(TSX:URB.A)(URB.TO)(CSE:URB.A) announced today that the Toronto Stock Exchange ("TSX") has accepted its notice of intention to conduct a normal course issuer bid to enable it to purchase up to 4,411,688 of its non-voting Class A shares (the "Class A Shares"), representing 10% of the public float, pursuant to TSX rules.
Purchases under the bid may commence on August 31, 2015, and will terminate on the earlier of August 30, 2016, the date Urbana completes its purchases pursuant to the notice of intention to make a normal course issuer bid filed with the TSX, and the date of notice by Urbana of termination of the bid. Purchases will be made on the open market by Urbana through the facilities of the TSX or the Canadian Securities Exchange ("CSE") in accordance with the rules and policies of the TSX. Caldwell Securities Ltd. will make all purchases pursuant to the bid on behalf of Urbana. The price that Urbana will pay for any such shares will be the market price of such shares on the TSX or the CSE at the time of acquisition. Class A Shares purchased under the bid will be cancelled. Urbana will not purchase on any given day, in the aggregate, more than 4,946 Class A Shares (the "Daily Limit"), being 25% of the average daily volume for the most recently competed six months, which is 19,784 shares (the "ADTV"), calculated in accordance with the TSX rules. Notwithstanding the above-mentioned Daily Limit, Urbana may make one block purchase per calendar week that exceeds the Daily Limit in accordance with TSX rules. A block purchase under TSX rules means a purchase that (a) has a total purchase price of at least $200,000, (b) is at least 5,000 shares and has a total purchase price of at least $50,000, or (c) is at least 20 board lots and at least 150% of the ADTV.
Pursuant to a previous notice of intention to conduct a normal course issuer bid accepted by the TSX on August 27, 2014 for the period of August 29, 2014 to August 28, 2015, Urbana has purchased, as of August 26, 2015, 4,356,300 Class A Shares on the open market at an average purchase price of $2.01 per share. As of August 26, 2015, the issued and outstanding number of Class A shares is 44,643,700 shares and the public float of the Class A share is 44,116,889 shares.
To the knowledge of Urbana, no director, senior officer or other insider of Urbana currently intends to sell any Class A shares under the bid. However, sales by such persons through the facilities of the TSX or the CSE may occur if the personal circumstances of any such person change or if any such person makes a decision unrelated to the bid. The benefits to any such person whose shares are purchased would be the same as the benefits available to all other holders whose shares are purchased.
Urbana believes that the market price of its Class A Shares at certain times may be attractive and that the purchase of Class A Shares from time to time would be an appropriate use of corporate funds in light of potential benefits to remaining shareholders.
Forward-Looking Statements
Certain statements in this press release constitute "forward-looking" statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Urbana to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Unless required by applicable securities law, Urbana does not assume any obligation to update these forward-looking statements.