CI Financial Announces Normal Course Issuer Bid and Automatic Securities Purchase Plan Approval
CI Financial Announces Share Buyback Program to Enhance Shareholder Value
TORONTO, July 09, 2024–CI Financial Corp. (TSX: CIX), a leading name in diversified global asset and wealth management, has received approval from the Toronto Stock Exchange (TSX) for a significant share buyback initiative. This move underscores the company’s confidence in its financial health and its commitment to delivering value to its shareholders.
Under the newly announced Normal Course Issuer Bid and Automatic Securities Purchase Plan (ASPP), CI Financial aims to repurchase up to 12,607,916 of its common shares. This figure represents 10% of the total public float as of July 5, 2024, signaling a robust step towards capital management. The buyback program is set to commence on July 11, 2024, and will extend until July 10, 2025, unless the allotted shares are purchased before the end date or the plan is terminated early by the company.
The repurchase transactions will be conducted through the facilities of the TSX and/or alternative Canadian trading systems, adhering to the regulatory framework. CI Financial has also outlined that any shares acquired directly by the company will be cancelled, contributing to a reduction in the overall shares outstanding and potentially increasing the value of remaining shares.
This strategic decision comes on the heels of the previous Normal Course Issuer Bid, which concluded on June 19, 2024. During that period, CI Financial successfully repurchased 15,148,895 common shares, showcasing the company’s ongoing commitment to utilizing its resources effectively to enhance shareholder value.
In addition to direct market purchases, CI Financial has entered into an ASPP with National Bank Financial Inc. (NBF). This arrangement enables the company to continue acquiring its shares during periods when it might otherwise be restricted from doing so due to regulatory constraints or self-imposed blackout periods. The ASPP is designed to operate within pre-set parameters, ensuring compliance with TSX rules and applicable securities laws.
CI Financial’s proactive approach to share buybacks reflects its belief that the market price of its common shares may not fully reflect the company’s intrinsic value based on its financial performance and future prospects. By reducing the number of shares outstanding, CI aims to increase the earnings per share and return on equity, thereby potentially enhancing shareholder value over time.
About CI Financial:
CI Financial Corp. is a global powerhouse in asset and wealth management, with operations primarily in Canada, the United States, and Australia. Since its inception in 1965, the company has focused on providing world-class portfolio management, wealth planning, and a comprehensive suite of products to its clients. As of May 31, 2024, CI Financial oversees approximately $482.2 billion in client assets, operating through its Asset Management, Canadian Wealth Management, and U.S. Wealth Management segments. Headquartered in Toronto, CI Financial continues to lead with innovation, integrity, and a client-first approach.
For further information, investors and media representatives are encouraged to contact CI Financial’s Investor Relations and Corporate Communications teams.
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