Exchange Income Corporation (EIC), listed on the Toronto Stock Exchange (TSX) under the ticker symbol EIF, has received approval from the TSX to renew its normal course issuer bid (NCIB) for its common shares (Common Shares) and certain series of debentures. Under this renewal, EIC is authorized to repurchase up to an aggregate of 4,414,853 Common Shares and various principal amounts of debentures issued by EIC.
The NCIB allows EIC to purchase Common Shares and debentures through the facilities of the TSX starting from March 19, 2024, until March 18, 2025, or until the maximum allowable amount of securities is repurchased, whichever comes earlier. Purchases will be made at market price, and any securities acquired will be cancelled.
As of March 5, 2024, the total outstanding securities included 47,223,534 Common Shares and various principal amounts of debentures across different series. The average daily trading volume for these securities over the preceding six months was also provided.
Daily purchase limits are set for each type of security to ensure orderly repurchases, with exceptions allowed for block purchases.
EIC’s previous NCIB, which ran from March 15, 2023, to March 14, 2024, did not result in any securities being repurchased.
The decision to seek approval for the NCIB stems from EIC’s belief that the market price of its securities may not always reflect their true value. In such cases, repurchasing securities is considered a prudent use of capital, contributing to shareholder value.
