Kontrol Technologies Corp (OTCQB:KNRLF, NEO:KNR) has said it intends to implement a new Normal Course Issuer Bid (NCIB) program to buy back its common shares through the facilities of the NEO Exchange and/or alternative trading systems.
The NCIB has been approved by Kontrol's board of directors and accepted by NEO and will be executed in accordance with the applicable rules and polices of NEO and any applicable Canadian securities laws.
Under the NCIB, Kontrol may purchase, from time to time, over a period of 12 months starting August 8, 2022, and ending August 7, 2023, up to 2,431,898 common shares, being approximately 5% of the 48,637,969 issued and outstanding common shares of the company as at July 29, 2022.
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On any given day, during the NCIB, Kontrol may only purchase up to 20,609 common shares, which is equivalent to 25% of the average daily trading volume of 82,436 calculated based on the trading volumes over the past 6 months and may purchase once per calendar week, in a block trade, a greater number of common shares.
Purchases under the NCIB may commence as of August 8, 2022, and will end on the earlier of: (i) August 7, 2023; or (ii) the date on which Kontrol has purchased the maximum number of common shares to be acquired under the NCIB. All purchases made will be through the selected purchasing member, PI Financial Corporation, acting on behalf of Kontrol.
The purchases will be made in accordance with the rules of the NEO, through the facilities of the NEO or through alternative trading systems. The actual number of common shares which will be purchased, the timing of such purchases, and the price at which the common shares will be purchased by Kontrol will be aligned with rules and policies of the NEO Listing Manual. The common shares purchased under the NCIB will be cancelled.
Under its prior NCIB that commenced on June 4, 2021, and expired on June 4, 2022, Kontrol had sought and received approval from the NEO to purchase up to 2,102,885 common shares. As of July 24, 2022, Kontrol has purchased 82,600 common shares under its prior NCIB through open market purchases on the NEO at a weighted average price of $1.27.
Kontrol said its board of directors believes that the market price of Kontrol's common shares may from time to time not reflect the underlying value of Kontrol, specifically its growth opportunities and that the proposed purchasing of its common shares is in the best interests of Kontrol and represents an appropriate use of corporate funds.
It is expected that any purchases made by Kontrol could also enhance value and liquidity for its shareholders.
Kontrol Technologies, a Canadian public company, is a leader in smart buildings and cities through IoT, Cloud and SaaS technology. Kontrol provides solutions and services to its customers to improve energy management, monitor continuous emissions and accelerate the sustainability of all buildings.
Contact the author at jon.hopkins@proactiveinvestors.com