Kits, a leading vertically integrated digital eyecare brand, has announced that the Toronto Stock Exchange has accepted its notice of intention to make a normal course issuer bid to purchase a portion of its common shares.
As of May 21, 2024, Kits had 31,450,102 issued and outstanding common shares. Pursuant to the normal course issuer bid, Kits may repurchase up to a maximum of 1,572,505 common shares, representing approximately 5% of its issued and outstanding common shares. Purchases under the normal course issuer bid may be made through open market transactions on the Toronto Stock Exchange and any alternative Canadian trading systems on which the common shares are traded, based on the prevailing market price. The total number of common shares the company is permitted to purchase is subject to a daily purchase limit of 4,889 common shares, representing 25% of the average daily trading volume of common shares on the Toronto Stock Exchange calculated for the six-month period, which ended on April 30, 2024 with approximately 19,557 common shares. However, the company may make one block purchase per calendar week which exceeds the daily repurchase restriction. Any common shares purchased under the normal course issuer bid will be cancelled.
Transactions under the normal course issuer bid will depend on future market conditions. Kits will initially retain discretion whether to make purchases under the normal course issuer bid, and to determine the timing, amount and acceptable price of any such purchases, subject at all times to the applicable Toronto Stock Exchange and other regulatory requirements. The period during which Kits is authorized to make purchases under the normal course issuer bid starts on June 3, 2024 and ends on June 2, 2025 or such earlier date on which the maximum number of common shares are purchased under the normal course issuer bid. Or, if the normal course issuer bid is terminated at the company’s election. Kits did not purchase any common shares under its previous normal course issuer bid that started on August 29, 2022 and terminated on August 28, 2023.
Kits believes that share purchases pursuant to the normal course issuer bid will contribute to the facilitation of an orderly market and be in the best interests of the company and its shareholders. The normal course issuer bid provides the company with a capital allocation alternative with a view to long-term shareholder value. Kits’ Board of Directors and management believe that, from time to time, the market price of the common shares does not reflect their underlying value and purchases of common shares for cancellation under the normal course issuer bid may provide an opportunity to enhance shareholder value.
The actual number of common shares that will be repurchased under the normal course issuer bid, and the timing of any such purchases, will be determined by Kits at management’s discretion, subject to the Toronto Stock Exchange’s rules and applicable securities laws. There cannot be any assurances as to how many common shares, if any, will ultimately be acquired by the company.
