Gran Colombia Gold Corp (TSX: GCM) this morning announced that it has been approved by the Toronto Stock Exchange to conduct a normal course issuer bid, also known as share buybacks, for up to 10% of the firms currently outstanding shares. The company has stated that it intends to use the buyback program over the next year to “support continued value creation for [..] shareholders.”
The buyback program will see the company repurchase up to 5,934,811 common shares over the course of the next twelve months. The figure represents a time weighted average of the firms current shares outstanding, with a total of 61,941,229 common shares currently being outstanding as of this morning.
The buybacks themselves are said to be funded via free cash flow from the firms operations, which is expected to provide a “permanent favourable impact to earnings and cash flow per share metrics.” The normal course issuer bid is to commence September 4, 2020 and end September 3, 2021, or at the time that all shares available under the program are repurchased. Daily share purchases are limited to 152,521 shares based on the firms daily volume average.
Sponsored · PTX Metals Inc.
The company has entered into an automatic share purchase plan to enable consistent purchases of the firms shares, even during blackout periods. All shares purchased are to be subsequently cancelled.
Gran Colombia Gold Corp last traded at $5.85 on the TSX.
Information for this briefing was found via Sedar and Gran Colombia Gold Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
