Leon’s Furniture Limited [TSX-LNF], today announced that it has received approval for a common share repurchase programme on The Toronto Stock Exchange. The Company intends to repurchase for cancellation a maximum of 3,869,268 Common Shares representing 4.99% of the total number of its 77,540,442 issued and outstanding Common Shares as at September 6, 2021. The average daily trading volume for the six months ending August 31, 2021 was 13,357. Therefore, other than block purchase exemptions, daily purchases will be limited to 3,339 common shares on the Toronto Stock Exchange
The bid will commence on September 15, 2021 and terminate on the earliest of the purchase of 3,869,268 Common Shares, the issuer providing a notice of termination, and September 14, 2022.
Purchases will be executed through the facilities of the Toronto Stock Exchange or alternative Canadian trading systems at market price under the normal course issuer bid rules of the Toronto Stock Exchange.
Pursuant to a previous notice of intention to conduct a normal course issuer bid, under which the Company sought and received approval from the TSX to purchase up to 4,010,999 shares for the period of September 15, 2020 to September 14, 2021, as of September 8, 2021, the Company has purchased 3,917,520 shares at an average purchase price of $21.11 per share through the facilities of the Toronto Stock Exchange and alternative Canadian trading systems.
Leon’s today also announced that it will be entering into an automatic share purchase plan with its broker, National Bank Financial Inc., in order to facilitate repurchases of common shares under the NCIB.
Under the ASPP for Leon’s, National Bank may purchase common shares at times when Leon’s ordinarily would not be active in the market due to insider trading rules and its own internal trading blackout periods. Purchases will be made by National Bank based upon parameters set by Leon’s prior to the commencement of any such blackout period and in accordance with the terms of the ASPP.
Shares of Leon’s traded up $.32 cents to $22.52.