WINNIPEG, MB, Nov. 10,
2022 /CNW/ - (TSX: NWC): The North
West Company Inc. (the "Company" or "North West") announced today
that the Toronto Stock Exchange (the "TSX") has accepted notice of
the Company's intention to make a normal course issuer bid ("NCIB")
for a portion of its common voting shares and variable voting
shares (the "Shares") as appropriate opportunities arise from time
to time. The board of directors of the Company believes that the
purchase by the Company of a portion of its outstanding Shares may
from time to time be an appropriate use of available resources and
in the best interests of the Company.
Pursuant to the NCIB notice filed with the TSX, the Company may
acquire up to a maximum of 4,740,895 of its Shares, or
approximately 10% of its public float as of the date of this news
release for cancellation over the next 12 months. As of the date of
this news release, the Company had 47,744,799 issued and
outstanding Shares.
Purchases under the NCIB will be made through the facilities of
the TSX or through Canadian alternative trading systems and in
accordance with applicable regulatory requirements at a price per
Share equal to the market price at the time of acquisition. The
number of Shares that can be purchased pursuant to the NCIB is
subject to a current daily maximum of 33,242 Shares (which is equal
to 25% of 132,971, being the average daily trading volume of
the Shares during the last six calendar months), subject to the
Company's ability to make one block purchase of Shares per calendar
week that exceeds such limits.
In connection with the NCIB, the Company has established an
automatic securities purchase plan (the "Plan") with its designated
broker to facilitate the purchase of Shares under the NCIB at times
when the Company would ordinarily not be permitted to purchase its
Shares due to regulatory restrictions or self-imposed blackout
periods. Under the Plan, before entering a self-imposed blackout
period, North West may, but is not required to, ask the designated
broker to make purchases under the NCIB within specified
parameters. Outside of the pre-determined blackout periods, Shares
may be purchased under the NCIB based on the discretion of the
Company's management, in compliance with TSX rules and applicable
securities laws. The Company may elect to suspend or discontinue
its NCIB at any time. The automatic securities purchase plan will
be effective as of November 15,
2022.
All Shares purchased under the NCIB will be cancelled upon their
purchase. The Company intends to fund the purchases out of its
available resources. The Company may begin to purchase Shares on
November 15, 2022 and the NCIB will
terminate on November 14, 2023, or
such earlier date as the Company completes its purchases pursuant
to the NCIB or provides notice of termination.
The NCIB follows the Company's normal course issuer bid for the
12 months ended November 11, 2022
(the "2022 NCIB"). Under the 2022 NCIB, the Company had obtained
approval to purchase up to 4,773,508 Shares. The 2022 NCIB began on
November 12, 2021 and will end on
November 11, 2022. Within the past 12
months, under the 2022 NCIB the Company repurchased through the
facilities of the TSX and alternative Canadian trading systems, and
cancelled, 382,582 Shares at a weighted average purchase price of
$33.67 per Share as at October 31, 2022.
Notice to Readers
Certain forward-looking statements are made in this news
release, within the meaning of applicable securities laws. These
statements reflect North West's current expectations and are based
on information currently available to management. The words may,
will, should, believe, expect, plan, anticipate, intend, estimate,
predict, potential, continue, or the negative of these terms,
identify forward-looking matters. These statements speak only as of
the date of this press release. The actual results could differ
materially from those anticipated in these forward-looking
statements.
Reliance should not be placed on forward-looking statements
because they involve known and unknown risks, uncertainties and
other factors, which may cause the actual results, performance,
capital expenditures or achievements of North West to differ
materially from anticipated future results, performance, capital
expenditures or achievement expressed or implied by such
forward-looking statements, including the Company's intentions
regarding a normal course issuer bid. Factors that could cause
actual results to differ materially from those set forth in the
forward-looking statements include, but are not limited to,
business performance and business continuity plans, fluctuations in
interest rates and currency values, legislative and regulatory
developments, legal developments, the occurrence of weather-related
and other natural catastrophes, changes in tax laws, and those
risks and uncertainties detailed in the section entitled Risk
Factors in North West's Management's Discussion and Analysis and
Annual Information Form, both for the year-ended January 31, 2022. The preceding list is not an
exhaustive list of possible factors. These and other factors should
be consdered carefully and readers are cautioned not to place undue
reliance on these forward-looking statements. North West undertakes
no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, other than as required by applicable law.
Company Profile
The North West Company Inc., through its subsidiaries, is a
leading retailer of food and everyday products and services to
rural communities and urban neighbourhoods in Canada, Alaska, the South Pacific and the Caribbean. North West operates 221 stores
under the trading names Northern, NorthMart, Giant Tiger, Alaska
Commercial Company, Cost-U-Less and RiteWay Food Markets and has
annualized sales of approximately CDN$2.0
billion.
The common shares of North West trade on the Toronto Stock
Exchange under the symbol NWC.
SOURCE The North West Company Inc.
