Mr. Mathieu Peloquin reports
STINGRAY RENEWS ITS NORMAL COURSE ISSUER BID
The Toronto Stock Exchange (TSX) has approved the renewal of Stingray Group Inc.'s normal course issuer bid (NCIB), authorizing Stingray to repurchase up to an aggregate 2,868,124 subordinate voting shares and variable subordinate voting shares, representing approximately 10 per cent of the public float (as defined in the TSX Company Manual) of subordinate shares as at Sept. 13, 2022.
The net average daily trading volume for the six-month period preceding Sept. 1, 2022, represents 37,616 subordinate shares. In accordance with TSX requirements, Stingray is entitled to purchase, on any trading day, up to a total of 9,404 subordinate shares, representing 25 per cent of this average daily trading volume.
Stingray believes that the purchase of up to 2,868,124 subordinate shares under the NCIB is an appropriate use of its funds and a desirable investment for Stingray and, therefore, would be in the best interests of Stingray. By making such repurchases, the number of subordinate shares in circulation will be reduced and the proportionate interest of all remaining shareholders in the share capital of Stingray will be increased on a pro rata basis.
Stingray may repurchase subordinate shares on the open market through the facilities of the TSX as well as through other alternative Canadian trading systems, from time to time, over the course of 12 months commencing Sept. 27, 2022, and ending at the latest on Sept. 26, 2023.
The actual number of subordinate shares purchased under the NCIB, the timing of purchases and the price at which the subordinate shares are bought will depend upon management discretion based on factors such as market conditions. All shares repurchased under the NCIB will be cancelled upon their repurchase.
In connection with the NCIB, Stingray has established an automatic securities purchase plan with a designated broker whereby shares may be repurchased at times when such purchases would otherwise be prohibited pursuant to regulatory restrictions or self-imposed blackout periods. Under the automatic securities purchase plan, before entering a self-imposed blackout period, Stingray may, but is not required to, ask the designated broker to make purchases under the NCIB. Such purchases will be made at the discretion of the designated broker, within parameters established by Stingray prior to the blackout periods. Outside the blackout periods, purchases are made at the discretion of Stingray's management. The automatic securities purchase plan constitutes an automatic plan for purposes of applicable Canadian securities legislation and has been precleared by the TSX.
As of Sept. 13, 2022, Stingray had repurchased a total of 1,409,900 subordinate shares through the facilities of the TSX as well as through other alternative Canadian trading systems pursuant to its previous NCIB (which will expire on Sept. 26, 2022, and allows the repurchase of up to 3,222,901 subordinate shares) at a weighted average price of $6.7729 per share. As of the close of business on Sept. 13, 2022, there were an aggregate of 51,774,302 subordinate shares issued and outstanding, of which 28,681,245 subordinate shares comprised the public float.
Montreal-based Stingray Group is a leading music, media and technology company with over 1,000 employees worldwide. Stingray is a premium provider of curated direct-to-consumer and B2B (business-to-business) services, including audio television channels, more than 100 radio stations, SVOD (stacked volumetric optical disc) content, 4K UHD (ultrahigh definition) television channels, FAST (free ad-supported television) channels, karaoke products, digital signage, in-store music and music applications, which have been downloaded over 160 million times. Stingray reaches 400 million subscribers (or users) in 160 countries.
We seek Safe Harbor.
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