EDMONTON, September 27, 2018 – Canadian Western Bank (TSX:CWB) ("CWB") announced today that a normal course issuer bid ("NCIB") authorized by its Board of Directors to purchase for cancellation during the next 12 months up to 1,767,000 common shares, representing approximately 2% of the issued and outstanding common shares, has been approved by the Toronto Stock Exchange ("TSX"), commencing October 1, 2018. No common shares were purchased under CWB’s current NCIB, which authorized the purchase of up to 1,767,000 common shares and terminates on September 30, 2018.
At the close of business on September 17, 2018, there were 88,929,045 common shares issued and outstanding. The actual number of common shares which will be purchased for cancellation and the timing of any such purchases will be determined by CWB.
Management believes CWB’s very strong capital position provides CWB with various capital deployment options, including dividend increases, potential acquisitions, and, under the appropriate circumstances, common share repurchases through an NCIB.
Purchases under the NCIB may be made by means of open market transactions through the facilities of the TSX or alternative Canadian trading systems. Other than block purchase exceptions made in accordance with TSX rules, daily purchases will be limited to a maximum of 60,111 common shares, which is approximately 25% of the average daily trading volume of common shares for the six months ended August 31, 2018, being 240,446.
CWB will establish an automatic securities purchase plan under which its arm’s length broker may purchase common shares of CWB pursuant to the NCIB (“the plan”). The plan defines a prearranged set of criteria under which its broker may make share purchases. The plan will enable the purchase of CWB’s common shares at any time, including when CWB would not otherwise make purchases because of internal trading blackout periods, insider trading rules or otherwise. The plan will take effect October 1, 2018 and terminate on the earliest of: the date on which the purchase limits specified in the plan have been attained, the date on which the NCIB terminates, or the date on which the plan is terminated by either CWB or its broker in accordance with its terms.
Purchases of common shares may commence on or about October 1, 2018 and will expire on the earlier of September 30, 2019 or the date on which the CWB has either acquired the maximum number of common shares allowable or otherwise decided not to make any further repurchases.
For more information, contact:
Matt Evans, CFA
Strategy & Corporate Development
CWB Financial Group