Parkland Corporation ("Parkland", "we", "our", or the "Company") (TSX:PKI) announced today that the Toronto Stock Exchange ("TSX") has accepted the Company's notice of intention to implement a normal course issuer bid (the "NCIB").
Under the NCIB, the Company may purchase for cancellation a maximum of 14,056,984 common shares of the Company (the "Shares"), representing 10% of the public float (as defined by the TSX) as of November 20, 2023. On November 20, 2023, Parkland had 176,113,112 Shares issued and outstanding. The NCIB will commence on December 1, 2023 and will terminate upon the earliest of (i) November 30, 2024, (ii) the Company purchasing the maximum of 14,056,984 Shares, and (iii) the Company terminating the NCIB.
The NCIB is intended to augment Parkland's ongoing return of capital to shareholders through dividends. Parkland believes that the market price of the Shares may not, from time to time, accurately reflect their underlying value. Accordingly, purchasing the Shares for cancellation under the NCIB may represent an attractive investment opportunity to enhance shareholder value.
Purchases under the NCIB will be made through the facilities of the TSX or alternative trading systems in Canada at the prevailing market price at the time of purchase. In accordance with the rules of the TSX, any daily repurchases (other than pursuant to a block purchase exception as defined by the TSX) under the NCIB will be limited to a maximum of 103,818 Shares, which represents 25% of the average daily trading volume on the TSX of 415,273 for the six months ended October 31, 2023.
In connection with the NCIB, the Company has entered into an automatic share purchase plan (the "ASPP") with its designated broker to allow for the purchase of Shares during certain pre-determined blackout periods during which the Company would ordinarily not be permitted to purchase Shares. Purchases under the ASPP will be determined by the designated broker in its sole discretion based on purchasing parameters set by Parkland in accordance with the rules of the TSX, applicable securities laws and the terms of the ASPP. The ASPP has been pre-cleared by the TSX and will become effective December 1, 2023, concurrently with the commencement of the NCIB. Outside of blackout periods, Shares may be purchased under the NCIB based on management's discretion, in compliance with the rules of the TSX and applicable securities laws. All purchases made under the ASPP will be included in computing the number of Shares purchased under the NCIB.
The NCIB continues the Company's existing NCIB (the "Existing NCIB"). Pursuant to the Existing NCIB, the Company has approval from the TSX to repurchase up to 13,992,412 Shares from December 1, 2022 to November 30, 2023. Under the Existing NCIB, the Company has purchased 1,040,363 Shares on the open market at a weighted average purchase price of $34.9697 per Share.
There can be no assurance as to the precise number of Shares that will be purchased under the NCIB, if any. Parkland may discontinue purchases under the NCIB at any time, subject to compliance with applicable regulatory requirements.