Alcanna Announces Intention to Institute a Normal Course Issuer Bid
EDMONTON, Alberta, June 25, 2021 (GLOBE NEWSWIRE) — Alcanna Inc. (the “Company” or “Alcanna“) (TSX: CLIQ) announced today its intention, subject to regulatory approval, including the approval of the Toronto Stock Exchange (the “TSX“), to commence a normal course issuer bid (the “NCIB“), which is expected to commence July 5, 2021 for a 12-month-period.
As of June 25, 2021, Alcanna had 36,204,449 common shares issued and outstanding. Under the NCIB, a maximum of 2,761,597 common shares (representing 10% of the public float of common shares) may be repurchased by the Company in open market transactions on the TSX, and/or alternative Canadian trading platforms in the 12-month period following acceptance of the NCIB by the TSX. The timing of and actual number of shares purchased will be determined by the Company and be subject to market conditions, share price and regulatory requirements.
Management of the Company believes that the market price of its common shares may not reflect their underlying value and that the purchase of the common shares for cancellation will increase the proportionate interest of, and will be advantageous to, all remaining shareholders. As a result, depending upon future price movements and other factors, Alcanna believes that the purchase of the common shares would be an appropriate allocation of capital and in the best interests of the Company and its shareholders. Furthermore, the purchases are expected to benefit all persons who continue to hold common shares by increasing their equity interest in Alcanna when the repurchased shares are cancelled.
The common shares will be purchased through the facilities of the TSX or other alternative Canadian marketplaces at prevailing market prices at the time of purchase. All common shares purchased under the bid will be cancelled. Decisions regarding any future repurchases will be based on market conditions, share price and other factors, including opportunities to invest in growth capital. There can be no assurance as to the precise number of common shares that will be repurchased. Alcanna may discontinue purchases under the NCIB at any time, subject to compliance with applicable regulatory requirements.
Alcanna is one of the largest private sector retailers of alcohol in North America and the largest in Canada by number of stores – operating in excess of 170 locations in Alberta and British Columbia. The Company’s majority-owned subsidiary, Nova Cannabis Inc. (TSXV: NOVC), also operates 54 cannabis retail stores in Alberta, Ontario, and Saskatchewan. Alcanna’s common shares trade on the Toronto Stock Exchange under the symbol “CLIQ”. Additional information about Alcanna is available at www.sedar.com and www.alcanna.com.
This news release contains forward-looking statements or information (collectively “forward-looking statements“) within the meaning of applicable securities legislation. Forward-looking statements are typically identified by words such as “continue”, “anticipate”, “will”, “should”, “plan”, “intend”, and similar words suggesting future events or future performance. All statements and information other than statements of historical fact contained in this news release are forward-looking statements. In particular, this news release contains forward-looking statements pertaining to potential purchases of Alcanna’s common shares under the NCIB.
With respect to forward-looking statements contained in this news release, the Company has made assumptions regarding, among other things: the ability of management to execute the Company’s strategic plan and growth strategy, including its capital allocation strategy and specifically its ability to grow its cannabis retail store locations and enhance profitability of its liquor business, assumptions about the COVID-19 pandemic and the impact it may have on the economies in Alberta and British Columbia.
Although the Company believes that the expectations reflected in the forward-looking statements, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations and assumptions will prove to be correct. Readers should not place undue reliance on forward-looking statements included in this news release. Forward-looking statements are not guaranteeing of future performance and involve a number of risks and uncertainties that may cause actual performance and financial results to differ materially from any estimates, forecasts or projections. These risks and uncertainties include, among other things, the ability of the Company to generate sufficient cash flow to meet obligations and fund the NCIB; variability in the amount, number of common shares, method, location and timing of purchases, if any, pursuant to the NCIB; fluctuations in currency and interest rates, the duration and severity of the COVID-19 pandemic on the business, operations and financial condition of the Company; the risk that Alcanna will be unable to execute its strategic plan and growth strategy, including the capital allocation and retail cannabis strategy, as planned without significant adverse impacts from various factors beyond its control; dependence on suppliers; potential delays or changes in plans with respect to capital expenditures and the availability of capital on acceptable terms; risks inherent in the liquor retail and cannabis industries; competition for, among other things, customers, supply, capital and skilled personnel; changes in labour costs and markets; incorrect assessments of the value of acquisitions; general economic and political conditions in Canada (including Alberta), and globally; industry conditions, including changes in government regulations; fluctuations in foreign exchange or interest rates; unanticipated operating events; failure to obtain regulatory and third‐party consents and approvals when required; changes in tax and other laws that affect us and our security holders; the potential failure of counterparties to honour their contractual obligations; stock market volatility; and the other factors described in the Company’s public filings (including the Annual Information Form) available at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
The forward-looking statements contained in this news release are made as of the date hereof. Except as expressly require by applicable securities legislation, Alcanna does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
FOR FURTHER INFORMATION
Vice Chair & Chief Executive Officer