AGF Management Limited - Normal Course Issuer Bid
AGF Management Limited ("AGF") announced today that the Toronto Stock Exchange ("TSX") has approved AGF's notice of intention to renew its normal course issuer bid in respect of its Class B Non-Voting Shares (AGF.b).
As at January 22, 2020, there were 78,641,020 Class B Non-Voting Shares issued and outstanding and the public float consisted of 59,477,860 Class B Non-Voting Shares.
Under the announced normal course issuer bid, AGF is permitted to purchase up to 5,947,786 Class B Non-Voting Shares, representing approximately 10% of the public float for such shares as of January 22, 2020. Purchases under the normal course issuer bid may commence on February 6, 2020 and continue until February 5, 2021, when the bid expires. Pursuant to the Articles of AGF, the Class B Non-Voting Shares may not be purchased by AGF at a price which exceeds more than 15% of the weighted average price at which the Class B Shares traded on the TSX during the ten trading days immediately preceding the date of any such purchase.
AGF announced that it will be entering into an automatic purchase plan (the "Plan") with a broker during the normal course issuer bid. The Plan is effective as of February 6, 2020 and should terminate together with the normal course issuer bid. The Plan allows for purchases by AGF of its Class B Non-Voting Shares during certain pre-determined black-out periods, subject to certain parameters. Outside of these pre-determined black-out periods, shares will be purchased in accordance with management's discretion.
Under the announced normal course issuer bid, purchases may be made through the facilities of TSX, alternative Canadian trading systems /other published markets, or as otherwise permitted by the Canadian Securities Administrators or Ontario Securities Commission. The average daily trading volume ("ADTV") of the Class B Non-Voting Shares (for the six month period ended January 31, 2020) on the TSX was 135,559. Under the rules of the TSX, AGF is entitled to repurchase during the same trading day on the TSX up to 25% of the ADTV of its Class B Non-Voting Shares, being 33,889 except where reliance is placed on the TSX's block purchase exemption.
Class B Non-Voting Shares purchased under the NCIB will be canceled or purchased and held by the AGF Employee Benefit Trust for the settlement of equity settled incentive plans by AGF. The directors believe that the purchase for cancellation of Class B Non-Voting Shares represents a desirable use of capital when, if in the opinion of management, the value of the Class B Non-Voting shares is attractive relative to the trading price of said shares. Purchase for cancellation by AGF of outstanding Class B Non-Voting Shares may also be used to offset the dilutive effect of treasury stock released for the employee benefit trust and of shares issued through AGF's stock option plans and dividend reinvestment plan.
Under its existing normal course issuer bid, which expires on February 5, 2020, AGF sought and received approval from the TSX to purchase 5,980,078 Class B Non-Voting Shares. During the period from February 6, 2019 to February 5, 2020, AGF acquired 596,890 Class B Non-Voting Shares at a weighted average price of $5.88.
About AGF Management Limited
Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF's suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.
AGF has investment operations and client servicing teams on the ground in North America, Europe and Asia. With nearly $39 billion in total assets under management, AGF serves more than one million investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.
The term AGF may refer to one or more of the direct and indirect subsidiaries of AGF Management Limited or to all of them jointly. These terms are used for convenience and do not precisely describe any of the separate companies, each of which manages its own affairs.
Director, Corporate Communications
Includes treasury stock in the amount of 124,346