TRU Precious Metals Corp. (TSX-V:TRU, OTCQB:TRUIF) has announced its plan to initiate a normal course issuer bid (NCIB) with the intention to purchase and cancel up to 9,668,743 common shares, equivalent to 10% of the company's outstanding public float as of the current date.
The NCIB is scheduled to begin on December 11, 2023, and conclude on December 10, 2024, or earlier if the maximum number of shares sought has been repurchased or if deemed appropriate by the company.
The purchases will occur through open market transactions on the TSX Venture Exchange and other exchanges, with the company paying the prevailing market price at the time of acquisition.
Hampton Securities Limited will facilitate the NCIB, and all acquired shares will be subsequently cancelled.
This is the first time that TRU has repurchased any of its issued shares.
The NCIB is subject to a maximum aggregate purchase price of $150,000 plus brokerage commissions, and the maximum price per share repurchased is set at $0.04.
Joel Freudman, CEO of TRU, told shareholders that the team believes TRU shares are “extremely undervalued,” especially after its September $3 million strategic financing from Ormonde Mining PLC (AIM:ORM) and its pipeline of gold and copper discoveries.
“We remain in a market environment where ‘cash is king', and accordingly, have imposed strict limits on the maximum expenditures to be incurred for the NCIB,” Freudman said in a statement.
The move will ensure that TRU has enough funds remaining in its treasury post-NCIB to fund ongoing operations until 2026, Freudman told investors, including a potential drill program at its Golden Rose project in summer 2024.