VEGREVILLE, ALBERTA–(Marketwired – June 28, 2017) – TerraVest Capital Inc. (“TerraVest” or the “Corporation“) (TSX:TVK) announced today that it has received the approval of the Toronto Stock Exchange (the “TSX“) to renew its normal course issuer bid (the “Bid“) for up to $1,802,900 aggregate principal amount of its issued and outstanding 7.00% convertible unsecured subordinated debentures due June 30, 2020 (the “Debentures“) on the TSX.
Purchases under the Bid may commence on July 4, 2017 and will terminate on July 3, 2018, or on such earlier date as the Bid is complete. Purchases of Debentures will be made through the facilities of the TSX in accordance with its rules. Purchases under the Bid may also be made through alternative Canadian trading platforms. The average daily trading volume of the Debentures for the previous six calendar months (“ADTV“) was $24,935 aggregate principal amount of Debentures. Subject to the TSX’s block purchase exception, on any trading day, purchases under the Bid will not exceed $6,233 aggregate principal amount of Debentures (25% of the ADTV). The price that the Corporation will pay for any Debentures purchased under the Bid will be the prevailing market price at the time of purchase. Any Debentures purchased by the Corporation will be cancelled.
As of June 28, 2017, there was $22,304,000 aggregate principal amount of Debentures issued and outstanding. The $1,802,900 aggregate principal amount of Debentures that may be repurchased under the Bid represents approximately 10% of the “public float” (as defined in the TSX Company Manual) of the Corporation’s issued and outstanding Debentures on June 28, 2017.
Pursuant to the Corporation’s normal course issuer bid which commenced on May 30, 2016, TerraVest purchased $454,000 aggregate principal amount of its Debentures at a weighted average price of $105.32 per Debenture. Pursuant to the Corporation’s normal course issuer bid for its common shares which commenced on December 19, 2016, TerraVest has purchased 70,500 of its common shares at a weighted average price of $9.26 per common share.
The Board of Directors of the Corporation has authorized the Bid because it believes that it is an efficient use of the Corporation’s financial resources to purchase Debentures when the market price of the Debentures does not fully reflect their underlying value.
Mitchell Gilbert
Chief Investment Officer
(416) 364-0064
[email protected]
TerraVest Capital Inc.
Dustin Haw
Chief Executive Officer
(416) 855-1928
[email protected]
