EDMONTON, Alberta, June 30, 2021 (GLOBE NEWSWIRE) — Alcanna Inc. (the “Company” or “Alcanna“) (TSX: CLIQ) today reported it has received approval from the Toronto Stock Exchange (the “TSX“) to commence a normal course issuer bid (the “NCIB“).
The NCIB commences on July 5, 2021 and will terminate on the earlier of July 4, 2022 and the date on which the maximum number of common shares that can be acquired pursuant to the NCIB have been purchased. Under the NCIB, the Company is authorized to purchase up to 1,000,000 common shares (representing approximately 2.8%) of the 36,204,449 issued and outstanding common shares of the Company as at June 29, 2021. Subject to market conditions and if considered advisable, the Company may, at a later date, apply to the TSX to increase the maximum number of common shares to be purchased under the NCIB.
In accordance with the TSX rules, Alcanna is permitted to purchase up to 44,479 common shares on a daily basis, representing 25% of the average daily trading volume of common shares on the TSX during the six-month period ended May 31, 2021. This daily purchase limit is subject to certain exceptions prescribed by the TSX, including block purchase exceptions.
Management of the Company believes that the market price of its common shares may not reflect their underlying value and that the purchase of common shares for cancellation will increase the proportionate interest of, and will be advantageous to, all remaining shareholders. As a result, depending upon future price movements and other factors, Alcanna believes that the NCIB would be an appropriate allocation of capital and in the best interests of the Company and its shareholders. Furthermore, the purchases of common shares under the NCIB are expected to benefit all persons who continue to hold common shares by increasing their proportionate equity interest in Alcanna.
Common shares will be purchased under the NCIB through the facilities of the TSX or other alternative Canadian marketplaces at prevailing market prices at the time of purchase. All purchased common shares will be cancelled. Decisions regarding any future repurchases of common shares will be based on market conditions, share price and other factors, including opportunities to invest in growth capital. There can be no assurance as to the precise number of common shares that will be repurchased. Alcanna may discontinue purchases under the NCIB at any time, subject to compliance with applicable regulatory requirements.
In connection with the NCIB, the Company has entered into an automatic repurchase plan (the “Plan“) with its designated broker. The Plan was established to provide standard instructions regarding how the common shares are to be repurchased under the NCIB. Accordingly, the Company may repurchase common shares under the Plan on any trading day during the NCIB including during self-imposed trading blackout periods. The Plan will commence immediately and terminate when the NCIB, terminates on or before July 4, 2022. The Company may otherwise vary, suspend or terminate the Plan only if it does not have material non-public information and the decisions to vary, suspend or terminate the Plan is not taken during a self-imposed trading blackout period. The Plan constitutes an “automatic securities purchase plan” for purposes of applicable Canadian securities legislation and has been reviewed by the TSX.
Alcanna is one of the largest private sector retailers of alcohol in North America and the largest in Canada by number of stores – operating in excess of 170 locations in Alberta and British Columbia. The Company’s majority-owned subsidiary, Nova Cannabis Inc. (TSXV: NOVC), also operates 55 cannabis retail stores in Alberta, Ontario, and Saskatchewan. Alcanna’s common shares trade on the Toronto Stock Exchange under the symbol “CLIQ”. Additional information about Alcanna Inc. is available at www.sedar.com and the Company’s website at www.alcanna.com.
This news release contains forward-looking statements or information (collectively “forward-looking statements“) within the meaning of applicable securities legislation. Forward-looking statements are typically identified by words such as “continue”, “anticipate”, “will”, “should”, “plan”, “intend”, and similar words suggesting future events or future performance. All statements and information other than statements of historical fact contained in this news release are forward-looking statements. In particular, this news release contains forward-looking statements pertaining to potential purchases of Alcanna common shares under the normal course issuer bid.
With respect to forward-looking statements contained in this news release, the Company has made assumptions regarding, among other things: the ability of management to execute the Company’s strategic plan and growth strategy, including its capital allocation strategy and specifically its ability to grow its cannabis retail store locations and enhance profitability of its liquor business, assumptions about the COVID-19 pandemic and the impact it may have on the economies in Alberta and British Columbia.
Although the Company believes that the expectations reflected in the forward-looking statements, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations and assumptions will prove to be correct. Readers should not place undue reliance on forward-looking statements included in this news release. Forward-looking statements are not guaranteeing of future performance and involve a number of risks and uncertainties that may cause actual performance and financial results to differ materially from any estimates, forecasts or projections. These risks and uncertainties include, among other things, the ability of the Company to generate sufficient cash flow to meet obligations and fund the NCIB; variability in the amount, number of common shares, method, location and timing of purchases, if any, pursuant to the NCIB; fluctuations in currency and interest rates, the duration and severity of the COVID-19 pandemic on the business, operations and financial condition of the Company; the risk that Alcanna will be unable to execute its strategic plan and growth strategy, including the capital allocation and retail cannabis strategy, as planned without significant adverse impacts from various factors beyond its control; dependence on suppliers; potential delays or changes in plans with respect to capital expenditures and the availability of capital on acceptable terms; risks inherent in the liquor retail and cannabis industries; competition for, among other things, customers, supply, capital and skilled personnel; changes in labour costs and markets; incorrect assessments of the value of acquisitions; general economic and political conditions in Canada (including Alberta), and globally; industry conditions, including changes in government regulations; fluctuations in foreign exchange or interest rates; unanticipated operating events; failure to obtain regulatory and third‐party consents and approvals when required; changes in tax and other laws that affect us and our security holders; the potential failure of counterparties to honour their contractual obligations; stock market volatility; and the other factors described in the Company’s public filings (including the Annual Information Form) available at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
The forward-looking statements contained in this news release are made as of the date hereof. Except as expressly require by applicable securities legislation, Alcanna does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
FOR FURTHER INFORMATION
Vice Chair & Chief Executive Officer