CALGARY, AB, May 28, 2021 /CNW/ - Mainstreet Equity Corp.
("Mainstreet" or the "Corporation") (TSX: MEQ) today announced
that the Toronto Stock Exchange ("TSX") has accepted its notice of
intention to make a normal course issuer bid to purchase
outstanding common shares of the Corporation ("Shares") on the open
market in accordance with the rules of the TSX.
The Corporation is authorized to purchase up to
476,008 Shares under the normal course issuer bid,
representing approximately 10% of its public float of issued and
outstanding Shares, as of May 19,
2021. As of that date, there were 9,345,218 Shares issued
and outstanding. The average daily trading volume of the Shares for
the past six months ended April 30,
2021, calculated in accordance with the rules of the TSX,
was 1,762 and Mainstreet is subject to a daily repurchase limit of
1,000 Shares. Mainstreet intends to commence the normal course
issuer bid on June 1, 2021 and
terminate the bid on May 31, 2022 or
such earlier time as the bid is completed or terminated at the
option of Mainstreet.
All shares purchased under this bid will be purchased in the
open market through the facilities of the TSX and/or alternative
Canadian trading systems at the prevailing market price at the time
of such transaction. Shares acquired under the bid will be
cancelled.
Mainstreet intends to acquire Common Shares from time to time in
amounts and prices which its management believes are favourable and
consistent with prudent economic and financial considerations.
During the period between June 1, 2020 and the date hereof,
Mainstreet repurchased 4,612 Shares under its previous normal
course issuer bid, at an average weighted price of $68.10 per Share, with such repurchases being
made through the facilities of the TSX and alternative Canadian
trading systems. Mainstreet had approval from the TSX to acquire up
to 476,539 Shares under such previous normal course issuer
bid.
Mainstreet's Board of Directors believes that, from time to
time, the market price of its Shares may not reflect their
underlying value. At such times, the Board of Directors
believe that the purchase of Shares for cancellation pursuant to
the normal course issuer bid is in the best interests of Mainstreet
and its shareholders, as the cancellation of the Shares will
increase the value of the remaining Shares.
Forward-Looking Information
Certain statements contained herein constitute
"forward-looking statements" as such term is used in applicable
Canadian securities laws. These statements relate to, among other
things, Mainstreet's intentions to acquire Shares pursuant to the
normal course issuer bid, the timing of such bid and that the
repurchase and cancellation of the Shares pursuant to the bid is in
the best interests of the shareholders and that it will increase
the value of the remaining Shares. Any statements that express or
involve discussions with respect to predictions, expectations,
beliefs, plans, projections, objectives, assumptions of future
events or performance (often, but not always, using such words or
phrases as "expects" or "does not expect", "is expected",
"anticipates" or "does not anticipate", "plans", "estimates" or
"intends", or stating that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved) are not statements of historical fact and should be
viewed as forward-looking statements.
Such forward-looking statements are not guarantees of future
events or performance and by their nature involve known and unknown
risks, uncertainties and other factors, including those risks
described in the Corporation's Annual Information Form under the
heading "Risk Factors" and the failure to realize anticipated
benefits of the normal course issuer bid, that may cause the actual
results, performance or achievements of the Corporation to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Although the Corporation has attempted to
identify important factors that could cause actual actions, events
or results to differ materially from those described in
forward-looking statements, other factors may cause actions, events
or results to be different than anticipated, estimated or intended.
There can be no assurance that such statements will prove to be
accurate as actual results and future events could vary or differ
materially from those anticipated in such forward-looking
statements. Accordingly, readers should not place undue reliance on
forward-looking statements contained herein.
Forward-looking statements are based on management's beliefs,
estimates and opinions on the date the statements are made, and the
Corporation undertakes no obligation to update forward-looking
statements if these beliefs, estimates or opinions should change,
except as required by applicable securities laws or as otherwise
described therein.
Certain information set out herein may be considered as
"financial outlook" within the meaning of applicable securities
laws. The purpose of this financial outlook is to provide readers
with disclosure regarding the Corporation's reasonable expectations
as to the anticipated results of its proposed business activities
for the periods indicated. Readers are cautioned that the financial
outlook may not be appropriate for other purposes.
SOURCE Mainstreet Equity Corporation