EDMONTON, AB, Dec. 16, 2021 /CNW/ - AutoCanada Inc.
("AutoCanada" or the "Company") (TSX: ACQ), a multi-location North
American automobile dealership group, announced today that the
Company intends to file with the Toronto Stock Exchange ("TSX") a
notice of intention to commence a normal course issuer bid
("NCIB"), as part of its overall capital allocation strategy.
Paul Antony, AutoCanada's
Executive Chairman commented, "We believe our shares are currently
undervalued and, based on the strength of our balance sheet,
coupled with our long-term outlook, an opportunity exists to create
value for our shareholders while continuing to execute against the
company's robust and growing M&A pipeline."
If accepted by the TSX, the Company would be permitted under the
NCIB to purchase for cancellation, through the facilities of the
TSX and/or alternative Canadian trading systems, up to 10% of the
Company's public float (calculated in accordance with TSX rules)
during the 12 months following such TSX acceptance. The exact
number of common shares subject to the NCIB will be determined on
the date of acceptance of the notice of intention by the TSX.
All common shares purchased by the Company under the NCIB will
be purchased at prevailing market prices in accordance with the
rules and policies of the TSX and applicable securities laws. The
actual number of common shares that may be purchased, and the
timing of any such purchases, will be determined by the Company,
subject to the applicable terms and limitations of the NCIB
(including any automatic repurchase plan adopted in connection
therewith). All common shares acquired by the Company under the
NCIB will be cancelled.
The Company intends to commence the NCIB two trading days after
TSX acceptance of the NCIB. The NCIB will terminate one year after
its commencement, or earlier if the maximum number of common shares
under the NCIB have been purchased. Although the Company has a
present intention to acquire its common shares pursuant to the
NCIB, the Company will not be obligated to make any purchases and
purchases may be suspended by the Company at any time. The Company
reserves the right to terminate the NCIB earlier if it feels it is
appropriate to do so.
In connection with the NCIB program, the Company intends to
enter into an automatic repurchase plan with its designated broker
to allow for purchases of its common shares during certain
pre-determined black-out periods, subject to certain parameters as
to price and number of shares. Outside of these pre-determined
black-out periods, shares will be repurchased in accordance with
management's discretion, subject to applicable law.
The Company reviews all elements of its capital allocation
strategy on an ongoing basis. The Company continues to focus on
supporting its acquisition pipeline, however, the Company proposes
to commence the NCIB because it believes that the market price of
the common shares may not, from time to time, fully reflect their
value and accordingly the purchase of the common shares would be in
the best interest of the Company and an attractive and appropriate
use of available funds. Currently, AutoCanada has over $100 million in revenues under agreement or
letter of intent and the Company continues to work towards building
its pipeline to continue its strategy of aggregating dealerships
with a focus on both brand and geographic diversification. M&A
remains a key focus for management. AutoCanada continues to take a
disciplined approach to its efforts as it continues to evolve and
grow its pipeline of dealership targets.
About AutoCanada
AutoCanada is a leading North
American multi-location automobile dealership group operating 78
franchised dealerships, comprised of 28 brands, in eight provinces
in Canada as well as a group in
Illinois, USA. AutoCanada
currently sells Chrysler, Dodge, Jeep, Ram, FIAT, Alfa Romeo,
Chevrolet, GMC, Buick, Cadillac,
Ford, Infiniti, Nissan, Hyundai, Subaru, Audi, Volkswagen, Kia,
Mazda, Mercedes-Benz, BMW, MINI, Volvo, Toyota, Lincoln, Honda, Porsche and Acura branded
vehicles. Additionally, the Company's Canadian operations segment
currently operates two used vehicle dealership supporting the Used
Digital Retail Division, and four stand-alone collision centres
(within our group of 18 collision centres). In 2020, our then
dealerships sold approximately 66,000 vehicles and processed over
756,000 service and collision repair orders in our 1,098 service
bays generating revenue in excess of $3
billion.
Additional information about AutoCanada Inc. is available at
www.sedar.com and the Company's website at www.autocan.ca.
Certain statements contained in this press release are
forward-looking statements and information (collectively,
"forward-looking statements") within the meaning of the applicable
Canadian securities legislation. We hereby provide cautionary
statements identifying important factors that could cause our
actual results to differ materially from those projected in these
forward-looking statements. Any statements that express, or involve
discussions as to, expectations, beliefs, plans, objectives,
assumptions or future events or performance (often, but not always,
through the use of words or phrases such as "will likely result",
"are expected to", "will continue", "is anticipated", "projection",
"vision", "goals", "objective", "target", "schedules", "outlook",
"anticipate", "expect", "estimate", "could", "should", "plan",
"seek", "may", "intend", "likely", "will", "believe" and similar
expressions) are not historical facts and are forward looking. In
particular, this press release contains forward-looking statements
with respect to, among other things, the intention to commence the
NCIB, the purchase and cancellation of common shares under the
NCIB, including the number of common shares to be purchased and
cancelled and the Company's acquisition pipeline.
The forward-looking statements included in this press release
are not guarantees of future performance and should not be unduly
relied upon. Readers are cautioned that forward-looking statements
are based on current expectations, estimates and projections that,
by their nature, forward-looking statements involve a number of
known and unknown risks and uncertainties, which could cause actual
results to differ materially from those anticipated and described
in the forward-looking statements. These known and unknown risks
and uncertainties include, but are not limited to: future operating
results, the impact of the COVID-19 pandemic on our operations,
financial condition and liquidity and the duration of such impacts;
potential changes in the regulatory and legislative environment;
volatility in interest and tax rates; operating risks inherent in
the automotive retail industry; and changes in general economic
conditions including the capital and credit markets all of which
may affect the Company's ability to or decision to purchase common
shares under its NCIB.
Forward-looking statements involve estimates and assumptions
and are subject to risks, uncertainties and other factors some of
which are beyond our control and difficult to predict. Accordingly,
actual results or outcomes may differ materially from those
expressed in the forward-looking statements.
AutoCanada cautions that the foregoing list of assumptions,
risks and uncertainties is not exhaustive. The Company's Annual
Information Form and other documents filed with securities
regulatory authorities (accessible through the SEDAR website at
www.sedar.com) describe the risks, material assumptions and other
factors that could influence actual results and which are
incorporated herein by reference. The forward-looking statements
contained in this press release speak only as of the date hereof
and AutoCanada assumes no obligation to publicly update or revise
them to reflect new events or circumstances, except as may be
required pursuant to applicable securities laws.
SOURCE AutoCanada Inc.