Irwin Naturals Inc. (CSE:IWIN) said it intends to start, on September 26, 2022, a normal course issuer bid under which it may purchase up to 75,466, or 5%, of the company's issued and outstanding subordinate voting shares over a 12-month period.
Irwin Naturals said it believes the market price of its shares may not fully reflect the underlying value of its business and prospects and that at such times the repurchase of its shares for cancellation represents an appropriate use of the company's financial resources and will enhance shareholder value.
"We are emerging to be the dominant player in the disruptive psychedelic mental health care sector. Our roll-up of ketamine clinics is picking up momentum,” CEO Klee Irwin said in a statement.
READ: Irwin Naturals Emergence mental-health clinic chain set to expand with ketamine clinic in Ohio
“Management and the board believe that as the market recovers and as the company continues to demonstrate profit growth, that shareholder value will be very positively impacted. As a result, we are taking advantage of the depressed stock market to buy back some of our stock."
The company has appointed Canaccord Genuity (TSX:CF, LSE:CF) Corp. to coordinate and facilitate the purchases which are expected to commence on September 26, 2022, and will conclude on September 26, 2023, or at an earlier date in the event purchases have been completed or if the company feels it is appropriate.
The purchases will be made through the open market and will be at the discretion of senior management. The average daily trading volume of the shares on the Canadian Securities Exchange (CSE) for the last six months is 1,644 and during the last 12 months, the company has not purchased any shares under a normal course issuer bid through the facilities of the CSE.
Irwin Naturals has been a household name and best-in-class nutraceutical company since 1994. On a mission to heal the world with plant medicine, it is now leveraging its brand in both the cannabis and psychedelics sectors.
Contact the author at jon.hopkins@proactiveinvestors.com