Givex (TSX:GIVX, OTCQX:GIVXF) Information Technology Group Limited revealed that it has received approval from the Toronto Stock Exchange (TSX) for a normal course issuer bid (NCIB), which is a stock buyback program used by companies listed in Canada.
The global fintech company said the TSX has accepted a notice of intention for the NCIB, permitting Givex (TSX:GIVX, OTCQX:GIVXF) to purchase for cancellation up to 6,101,326 common shares over a 12-month period, representing around 5% of the shares outstanding as of October 27, 2022.
Givex said the NCIB is expected to start on November 9, 2022, and end on November 8, 2023, or such earlier date on which purchases under the NCIB have been completed. The stock buyback program will happen through the facilities of the TSX, or alternative Canadian trading systems at the market price of the shares at the time of acquisition.
The average daily trading volume of the shares on the TSX for the last six months is 22,409 shares. The maximum number of shares that may be purchased daily, subject to any approved exceptions, will be 5,602 shares. Shares purchased under the NCIB will be cancelled, noted the company.
Givex plans to enter an automatic share purchase plan with Research Capital Corp in connection with the NCIB to allow for the purchase of shares during certain pre-determined blackout periods. Outside of these pre-determined blackout periods, shares will be purchased at the discretion of senior management.
The Toronto-based company noted that shares may, from time-to-time, trade in a price range that does not adequately reflect the value of the shares in relation to the company's prospects. As a result, Givex believes that the purchase of shares would be an “appropriate use of corporate funds in light of potential benefits to remaining shareholders.”
In addition, Givex has suspended the automatic securities disposition plan (ASDP) previously announced on May 16, 2022, which to date has resulted in the sale of no shares.
Givex is a global fintech company providing merchants with customer engagement, point of sale and payment solutions, all in a single platform.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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