AcuityAds Holdings Inc., a digital advertising technology leader that provides targeted media solutions enabling advertisers to connect intelligently with audiences across digital advertising channels, announced that the Company intends to make a normal course issuer bid (“NCIB”) to purchase up to 5,350,000 common shares of the Company, and that its Board of Directors (the “Board”) has adopted an advance notice by-law.
Normal Course Issuer Bid
The Company reviews all elements of its capital allocation strategy on an ongoing basis. Management and the Board believe that the market price of the common shares may not, from time to time, fully reflect their value and accordingly, the purchase of the common shares would be in the best interests of the Company and its shareholders and represents an attractive and appropriate use of available funds.
“While M&A remains a key focus for management, the strength of our balance sheet with over $100 million in cash, generating approximately $20 million in annual cash flow from operations, and our growth outlook creates an opportunity to surface additional value for our shareholders while continuing to execute against the Company’s long-term strategic plan”, said Tal Hayek, Co-Founder and Chief Executive Officer of AcuityAds.
The NCIB has been approved by the Board; however it is subject to acceptance by the Toronto Stock Exchange (the “TSX”), and if accepted, will be made in accordance with the applicable rules and policies of the TSX and Canadian securities laws. Under the NCIB, the Company would be permitted to purchase for cancellation, through the facilities of the TSX and/or alternative Canadian trading systems, up to 10% of the Company’s public float (calculated in accordance with TSX rules), or 5,350,000 common shares, during the 12 months following such TSX acceptance. The exact number of common shares subject to the NCIB will be determined on the date of acceptance of the notice of intention by the TSX.
All common shares purchased by the Company under the NCIB will be purchased at prevailing market prices in accordance with the rules and policies of the TSX and applicable securities laws. The actual number of common shares that may be purchased, and the timing of any such purchases, will be determined by the Company, subject to the applicable terms and limitations of the NCIB. All common shares acquired by the Company under the NCIB will be cancelled.