Toronto Stock Exchange greenlights 10% public float as lender focuses on growth
Canadian non-prime lender goeasy Ltd. has renewed its normal course issuer bid (NCIB) to repurchase up to 1,293,283 of its common shares, representing about 10% of the company's public float. The Toronto Stock Exchange (TSX) approved the plan, allowing purchases to begin on December 23, 2024, and continue until December 22, 2025.
Under the NCIB, goeasy can buy up to 14,113 shares daily, a limit set at 25% of the average daily trading volume of 56,453 shares over the past six months. These transactions will occur on the TSX or alternative Canadian trading systems at prevailing market prices.
The company has also entered into an automatic purchase plan agreement with a designated broker. This allows the broker to independently buy shares on goeasy’s behalf during blackout periods, adhering to predefined terms and regulatory requirements.
Headquartered in Mississauga, goeasy provides non-prime lending and leasing services through its easyhome, easyfinancial, and LendCare brands. The company employs over 2,500 people and offers a wide range of financial products, including unsecured and secured installment loans and merchant financing options.
goeasy described the NCIB as a tool within its broader capital management strategy. The initiative balances maintaining strong capital levels with generating value for shareholders.
During its current NCIB period, which ends December 20, 2024, goeasy repurchased 92,903 shares at an average price of $166.89 per share.
The renewal comes on the heels of several significant developments for goeasy. In September, the company appointed Radhika Kakkar, COO of Wealthsimple, to its board of directors. Kakkar’s expertise in operations, strategy, and customer success complements the lender’s expansion ambitions.
Read more: Wealthsimple COO joins Goeasy's board to drive non-prime lending growth
Earlier in July, goeasy enhanced its financial capabilities by amending its senior secured revolving credit facility. The agreement raised the credit line from $370 million to $550 million, extended its maturity to July 2027, and provided improved borrowing terms. Major financial institutions, including the Bank of Montreal and the Royal Bank of Canada, supported the deal.
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