Mr. Iain Stewart reports
GENESIS LAND DEVELOPMENT CORP. ANNOUNCES RENEWAL OF ITS NORMAL COURSE ISSUER BID
The Toronto Stock Exchange has accepted a notice filed by Genesis Land Development Corp. to renew its normal course issuer bid for a one-year period. The bid will commence on Oct. 13, 2020, and will terminate on the earlier of: (i) Oct. 12, 2021; and (ii) the date on which the maximum number of Genesis common shares that may be purchased pursuant to the bid have been purchased. Purchases of common shares under the bid will be effected through the facilities of the TSX or alternative Canadian trading systems at the market price at the time of purchase. All common shares purchased pursuant to the bid will be cancelled.
The company's board of directors and management believe that the market prices of the common shares do not properly reflect the underlying value of the company's assets and business and, accordingly, the purchase by the company of common shares pursuant to the bid constitutes an appropriate investment of corporate funds which will benefit both the company and its shareholders.
Pursuant to the bid, Genesis may purchase for cancellation up to 2,098,885 common shares, which is 5 per cent of Genesis's issued and outstanding common shares as at Sept. 30, 2020. The purchase price of the common shares is restricted to a maximum of $3 per common share and an overall maximum of $6,296,655. The company intends to monitor these restrictions and, subject to TSX approval, make any appropriate alterations in accordance with the bid from time to time. Pursuant to the rules of the TSX, the maximum number of common shares that the company may purchase in any one day is 5,040 common shares or 25 per cent of the company's average daily trading volume of 20,161 common shares on the TSX in the six months ended Sept. 30, 2020. Genesis may also make one block purchase per calendar week which exceeds the daily purchase restriction in accordance with TSX rules.
Effective Oct. 13, 2020, the company has arranged to renew the automatic share purchase plan with Stifel Nicolaus Canada Inc., the designated broker under the bid, to facilitate the purchase of common shares pursuant to the bid based on parameters established by the company.
Pursuant to a previous notice of intention to conduct a normal course issuer bid under which company sought and received approval from the TSX to purchase up to 2,109,016 common shares for the period Oct. 10, 2019, to Oct. 9, 2020, the company had purchased, as of Sept. 30, 2020, 210,004 common shares on the open market at an average purchase price of $1.62 per share. As of Sept. 30, 2020, 41,977,715 common shares were issued and outstanding with a public float of 11,845,752 common shares.
About Genesis Land Development Corp.
Genesis Land Development Corp. is a land developer and residential home builder in the Calgary metropolitan area. The company's common shares are listed on the Toronto Stock Exchange (TSX: GDC).
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