On October 10, 2024, at 5:00 PM EDT, Dexterra Group Inc. (TSX: DXT) announced that the Toronto Stock Exchange (TSX) has approved its notice of intention to amend its normal course issuer bid (NCIB) that began on May 23, 2024. The NCIB, which expires on May 22, 2025, now allows for the acquisition of up to 3,207,361 common shares, representing approximately 5.0% of Dexterra’s issued and outstanding common shares as of May 16, 2024. Fairfax Financial Holdings Limited and its subsidiaries will maintain their proportionate interest in Dexterra through the end of 2024.
The increase in the maximum number of common shares available for repurchase is effective from October 16, 2024. This amendment allows for the repurchase and cancellation of an additional 3,041,761 common shares, including those held by Fairfax. Dexterra believes that the current trading range of its common shares does not reflect their true value and sees the NCIB as an attractive investment opportunity.
Under the terms of the NCIB, Dexterra has the authority to purchase its own common shares for cancellation through the TSX or other Canadian trading systems. The company may repurchase up to 3,207,361 common shares, based on the average daily trading volume on the TSX. Fairfax’s participation in the NCIB allows them to maintain their ownership percentage below 50%, enabling Dexterra to utilize certain tax losses by the end of 2024.
Purchases from Fairfax will be conducted through Dexterra’s broker as per an automatic share disposition plan agreement to track the proportionate ownership. Additionally, Dexterra’s automatic share purchase plan with a designated broker will continue to allow for the purchase of common shares under the NCIB, including those held by Fairfax, during regulatory restrictions or internal trading black-out periods.
Dexterra’s forward-looking information emphasizes the company’s future outlook, potential events, financial performance, and risks. Investors are urged to consider the factors and assumptions underlying the statements, as detailed in Dexterra’s recent financial statements and securities filings, to make informed decisions.
For additional information about this announcement, please visit the original source at the following link: https://www.newsfilecorp.com/release/224735.
