TORONTO AND BARBADOS , June 17, 2020 /CNW/ - The board of directors of Sagicor Financial Company Ltd. ("Sagicor") has authorized a share buyback program that will allow Sagicor to repurchase up to 3,000,000 of Sagicor's common shares (the "NCIB Shares"). The Toronto Stock Exchange (the "TSX") has accepted Sagicor's notice of intention to make a normal course issuer bid ("NCIB") through which Sagicor may purchase the NCIB Shares during the 12-month period commencing June 22, 2020 and ending June 21, 2021 . The number of shares authorized for purchase represents 2.01 percent of Sagicor's 149,161,886 issued and outstanding common shares as of June 16 , 2020. Under the NCIB, purchases may be made on the open market through the facilities of the TSX and/or alternative Canadian trading systems at the market price at the time of acquisition, as well as by other means as may be permitted by TSX rules and applicable securities laws. However, Sagicor may establish a maximum price and/or maximum block trade size from time to time.
Sagicor has also entered into an automatic share purchase plan ("ASPP") in relation to purchases made in connection with the NCIB to allow it to purchase the NCIB Shares under the NCIB when Sagicor would ordinarily not be permitted to purchase shares due to regulatory restrictions and customary self-imposed blackout periods. Pursuant to the ASPP, Sagicor will provide instructions during the non-blackout periods to its designated broker, which instructions may not be varied or suspended during the applicable blackout period. Purchases by Sagicor's designated broker will be in accordance with stock exchange rules, applicable securities laws and the terms of the ASPP, and all purchases made under the ASPP will be included in computing the number of NCIB Shares purchased under the NCIB. The ASPP has been pre-cleared by the TSX.
The actual number of common shares that may be purchased under the NCIB and the timing of any such purchases will be determined by Sagicor. The average daily trading volume through the facilities of the TSX during the 26-week period ending June 9, 2020 was 4,978 common shares. In accordance with temporary blanket relief announced by the TSX on March 23, 2020 , daily purchases made by Sagicor through the TSX on or before June 30, 2020 may not exceed 2,489 common shares, representing 50% of the average daily trading volume, other than block purchase exceptions. Following the expiry of such temporary relief on June 30, 2020 , the number of common shares that can be purchased pursuant to the NCIB may not exceed 1,244 common shares, other than block purchase exceptions. Common shares purchased under the NCIB will be cancelled. The NCIB is not being made to shareholders resident in any jurisdiction where it would not be in compliance with local laws.
Sagicor believes that the underlying value of the Company may not be accurately reflected at times in the market price of the common shares, and that purchasing its own shares represents an attractive opportunity that is in the best interests of Sagicor and its shareholders, as well as providing liquidity for its shareholders who may wish to dispose of their shares.
About Sagicor Financial Company Ltd.
Sagicor Financial Company Ltd. (SFC.TO) is a leading financial services provider in the Caribbean , with almost 180 years of history, and has a growing presence as a provider of life insurance products in the United States . Sagicor offers a wide range of products and services, including life, health, and general insurance, banking, pensions, annuities, and real estate. Sagicor's registered office is located at Clarendon House, 2 Church Street, Hamilton , HM 11, Bermuda , with its principal office located at Cecil F De Caires Building, Wildey, St. Michael , Barbados. Additional information about Sagicor can be obtained by visiting www.sagicor.com.
Certain information contained in this news release may be forward-looking statements within the meaning of Canadian securities laws. Forward-looking statements are often, but not always identified by the use of words such as "expect", "anticipate", "believe", "foresee", "could", "estimate", "goal", "intend", "plan", "seek", "will", "may" and "should" and similar expressions or words suggesting future outcomes. This news release includes forward-looking information and statements pertaining to the NCIB and ASPP. In particular, there can be no assurance as to the number of shares that may be repurchased. These forward-looking statements reflect material factors and expectations and assumptions of Sagicor. Sagicor's estimates, beliefs and assumptions are inherently subject to uncertainties and contingencies regarding future events and as such, are subject to change. Risks and uncertainties not presently known to Sagicor or that it presently believes are not material could cause actual results or events to differ materially from those expressed in its forward-looking statements. Additional information on these and other factors that could affect events and results are included in other documents and reports that will be filed by Sagicor with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect Sagicor's expectations only as of the date of this document. Sagicor disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.
SOURCE Sagicor Financial Company Ltd.
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