FAX Capital Corp. (TSX: FXC) this morning announced its plans to renew its normal course issuer bid and buy back its previously issued common shares. The company may purchase the shares from June 8, 2021, to June 7, 2022.
Under the terms of the agreement, FAX Capital is permitted to buy back up to 1,488,480 of its subordinate voting shares, representing 10% of the public float of 14,884,805 shares. As of May 31, 2021, the company had a total of 15,812,608 issued and outstanding subordinate voting shares.
Following the regulations, the shares will be bought at the prevailing market price at the time of purchase while not exceeding 3,687 shares per day or 25% of the average daily trading volume.
This new share buy-back program is set to renew the company’s previous normal course issuer bid which is set to expire on June 7, 2021. Under the previous bid, FAX Capital was permitted to purchase up to 1,519,037 subordinate voting shares. As of May 31, 2021, the company had purchased an aggregate of 247,063 shares at $3.40 per share for a total cash consideration of $840,386.
FAX Capital Corp. last traded at $4.18 on the TSX.
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