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FirstService Amends Normal Course Issuer Bid, Enters Automatic Share Purchase Plan

Created at 2 Jun · 11:43 AM1 source
IN SHORT

FirstService Corporation announced an amendment to its normal course issuer bid to increase the maximum number of shares that can be repurchased. The company also entered into an automatic share purchase plan (ASPP) with its broker.

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Key Numbers

10% increaseincrease in maximum shares for issuer bid

Who's Involved

FirstService Corporation
Company announcing amendments to share repurchase program

↳ Why This Matters

The amendment to the issuer bid and the implementation of an ASPP indicate FirstService's proactive approach to capital allocation and shareholder value enhancement, potentially signaling management's belief that the stock is undervalued.

Key facts

  • FirstService Corporation amended its normal course issuer bid.
  • The amendment allows for the repurchase of a greater number of shares.
  • FirstService entered into an automatic share purchase plan (ASPP).
  • The ASPP allows for the purchase of shares during blackout periods.

FirstService Corporation has made a strategic move to enhance its shareholder return program by amending its normal course issuer bid. This amendment permits the company to repurchase a larger quantity of its outstanding shares, signaling confidence in its valuation and a commitment to returning capital to shareholders. Concurrently, the company has established an automatic share purchase plan (ASPP) with its designated broker. This plan is designed to facilitate share repurchases even during periods when the company might otherwise be restricted from trading due to insider knowledge or blackout periods, ensuring a consistent approach to its buyback strategy.

Frequently asked questions

A normal course issuer bid is a program where a public company repurchases its own shares from the open market.

An ASPP allows a company to buy back its shares through a broker according to pre-set instructions, even during periods when the company's insiders are restricted from trading.

A company might amend its issuer bid to increase the number of shares it can repurchase, often reflecting a belief that the stock is undervalued or to manage its capital structure.

What Happens Next

01FirstService will continue to execute its amended normal course issuer bid.
02The automatic share purchase plan will be active during specified blackout periods.

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How It Developed

2 Jun · 11:35 AM
FirstService announced an amendment to its normal course issuer bid to increase the maximum number of shares it may repurchase and entered into an automatic share purchase plan.
Financial Post via PiQSuite

Sources

T1
FirstService Announces Amendment to Maximize Size of Normal Course Issuer Bid and Entering Into of Automatic Share Purchase Planm.piqsuite.com

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