WINNIPEG, Manitoba, Nov. 19, 2024 (GLOBE NEWSWIRE) -- (TSX: NWC): The North West Company Inc. (the “Company” or “NorthWest”) announced today that the Toronto Stock Exchange (the “TSX”) has accepted notice of the Company’s intention to make a normal course issuer bid (“NCIB”) for a portion of its common voting shares and variable voting shares (the “Shares”) as appropriate opportunities arise from time to time. The board of directors of the Company believes that the purchase by the Company of a portion of its outstanding Shares may from time to time be an appropriate use of available resources and in the best interests of the Company.
Pursuant to the NCIB notice filed with the TSX, the Company may acquire up to a maximum of 4,765,289 of its Shares, or approximately 10% of its public float as of the date of November 19, 2024, for cancellation over the next 12 months. As of November 19, 2024, the Company has 47,847,504 issued and outstanding Shares. The actual number of Shares that may be purchased pursuant to the NCIB will be determined by management of the Company, subject to applicable law and the rules of the TSX.
Purchases under the NCIB will be made through the facilities of the TSX or through Canadian alternative trading systems and in accordance with applicable regulatory requirements at a price per Share equal to the market price at the time of acquisition. The number of Shares that can be purchased pursuant to the NCIB is subject to a current daily maximum of 18,909 (which is equal to approximately 25% of 75,637, being the average daily trading volume of the Shares during the last six calendar months), subject to the Company’s ability to make one block purchase of Shares per calendar week that exceeds such limits.
In connection with the NCIB, the Company has established an automatic securities purchase plan (the “Plan”) with its designated broker to facilitate the purchase of Shares under the NCIB at times when the Company would ordinarily not be permitted to purchase its Shares due to regulatory restrictions or self-imposed blackout periods. Under the Plan, before entering a self-imposed blackout period, North West may, but is not required to, ask the designated broker to make purchases under the NCIB within specified parameters. Outside of the pre-determined blackout periods, Shares may be purchased under the NCIB based on the discretion of the Company’s management, in compliance with TSX rules and applicable securities laws. The Company may elect to suspend or discontinue its NCIB at any time. The automatic securities purchase plan will be effective as of November 21, 2024.
All Shares purchased under the NCIB will be cancelled upon their purchase. The Company intends to fund the purchases out of its available resources. The Company may begin to purchase Shares on November 21, 2024 and the NCIB will terminate on November 20, 2025, or such earlier date as the Company completes its purchases pursuant to the NCIB or provides notice of termination.
The NCIB follows the Company’s normal course issuer bid for the 12 months ended November 17, 2024 (the “2024 NCIB”). Under the 2024 NCIB, the Company had obtained approval to purchase up to 4,733,380 Shares. The 2024 NCIB began on November 17, 2023 and ended on November 16, 2024. Within the past 12 months, under the 2024 NCIB the Company did not repurchase and cancel any Shares through the facilities of the TSX and alternative Canadian trading systems as at October 31, 2024.
Notice to Readers
Certain forward-looking statements are made in this news release, within the meaning of applicable securities laws. These statements reflect North West’s current expectations and are based on information currently available to management. Forward looking statements about the Company, including its business operations, strategy and expected financial performance and condition that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects”, “anticipates”, “plans”, “believes”, “estimates”, “intends”, “targets”, “projects”, “forecasts” or negative versions thereof and other similar expressions, or future or conditional future financial performance (including sales, earnings, growth rates, capital expenditures, dividends, debt levels, financial capacity, access to capital, and liquidity), ongoing business strategies or prospects, the Company's intentions regarding a normal course issuer bid, the number of Shares purchased under the NCIB, the potential impact of a pandemic on the Company's operations, supply chain and the Company's related business continuity plans, the realization of cost savings from cost reduction plans, the anticipated impact of The Next 100 strategic priorities and possible future action by the Company.
Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Company, economic factors and the retail industry in general. They are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Company due to changes in economic conditions, political and market factors in North America and internationally. These factors include, but are not limited to, changes in inflation, interest and foreign exchange rates, the Company's ability to maintain an effective supply chain, changes in accounting policies and methods used to report financial condition, including uncertainties associated with critical accounting assumptions and estimates, the effect of applying future accounting changes, business competition, technological change, changes in government regulations and legislation, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events, the Company's ability to complete and realize benefits from capital projects, E-Commerce investments, strategic transactions and the integration of acquisitions, the Company's ability to realize benefits from investments in information technology ("IT") and systems, including IT system implementations, or unanticipated results from these initiatives and the Company's success in anticipating and managing the foregoing risks.
The reader is cautioned that the foregoing list of important factors is not exhaustive. Other risks are outlined in the Risk Management section of the 2023 Annual Report and in the Risk Factors sections of the Annual Information Form and Management Information Circular, material change reports and news releases. The reader is also cautioned to consider these and other factors carefully and not place undue reliance on forward-looking statements. Other than as specifically required by applicable law, the Company does not intend to update any forward-looking statements whether as a result of new information, future events or otherwise.
Additional information on the Company, including our Annual Information Form, can be found on SEDAR+ at www.sedarplus.com or on the Company's website at www.northwest.ca.
Company Profile
The North West Company Inc., through its subsidiaries, is a leading retailer of food and everyday products and services to rural communities and urban neighbourhoods in Canada, Alaska, the South Pacific and the Caribbean. North West operates 229 stores under the trading names Northern, NorthMart, Giant Tiger, Alaska Commercial Company, Cost-U-Less and RiteWay Food Markets and has annualized sales of approximately CDN$2.5 billion.
The common shares of North West trade on the Toronto Stock Exchange under the symbol NWC.
For more information contact:
Dan McConnell, President and Chief Executive Officer, The North West Company Inc. Phone 204-934-1482; fax 204-934-1317; email dmcconnell@northwest.ca
John King, Executive Vice-President and Chief Financial Officer, The North West Company Inc. Phone 204-934-1397; fax 204-934-1317; email jking@northwest.ca
