Dominion Lending Centres Inc. Launches Normal Course Issuer Bid and Automatic Share Purchase Plan
- Implementation of share buyback program shows confidence in company's financial position
- NCIB provides flexibility to return capital to shareholders through share repurchases
- Program complements existing dividend program, demonstrating commitment to shareholder returns
- Company maintains strong focus on growth investments while adding capital allocation options
- Share repurchases will reduce cash available for growth investments
- Daily purchase limit of 19,408 shares may restrict buyback execution speed
- Actual share repurchases are not guaranteed and depend on market conditions
Vancouver, British Columbia--(Newsfile Corp. - June 2, 2025) - Dominion Lending Centres Inc. (TSX: DLCG) ("DLCG" or the "Corporation") is pleased to announce that the Toronto Stock Exchange (TSX) has approved the Company's new normal course issuer bid (NCIB) to purchase, for cancellation, up to 2,100,000 of its outstanding class "A" common shares ("Common Shares"). "While our top priority remains utilizing our excess capital to pursue accretive growth investments, we are instituting an NCIB in order to have the ability to opportunistically acquire Common Shares to enhance shareholder value. The NCIB is intended to augment our existing capital allocation strategy, namely our established dividend program, as well as our primary focus of pursing growth" said Gary Mauris, Co-Founder and Chief Executive Officer."
Purchases under the NCIB may be made through the facilities of the TSX and alternative Canadian trading systems, commencing on June 5, 2025 and continuing until June 4, 2026, when the bid expires, or such earlier date on which the Company has either acquired the maximum number of Common Shares allowable under the NCIB or otherwise decides not to make any further repurchases under the NCIB. The maximum number of Common Shares that DLCG may repurchase for cancellation represents approximately
The Corporation's NCIB is intended to provide an additional capital allocation tool to supplement its dividend program as a means of returning capital to shareholders. Repurchases of Common Shares pursuant to the NCIB are expected to be opportunistic and will be predicated upon maintaining a strong balance sheet, performance of the business, and the availability and attractiveness of alternative capital investment opportunities. The price that DLCG will pay for Common Shares in open market transactions will be the market price at the time of purchase and Common Shares purchased under the NCIB will be cancelled. The actual number of Common Shares purchased under the NCIB, the timing of purchases, and the price at which the Common Shares are acquired will depend upon future market conditions.
The NCIB will be effected in accordance with the TSX's NCIB rules, which contain restrictions on the number of Common Shares that may be purchased on a single day, subject to certain exceptions for block purchases, based on the average daily trading volumes of DLCG's Common Shares on the applicable exchange. Subject to exceptions for block purchases, DLCG will limit daily purchases of Common Shares on the TSX in connection with the NCIB to no more than 19,408 Common Shares during any trading day (as required by TSX rules) based on DLCG's average daily trading volume of 77,635 for the six-month period ended May 31, 2025.
The Company will also enter into an automatic share purchase plan ("ASPP") with a broker in order to facilitate repurchases of Common Shares under the NCIB. The ASPP will facilitate purchases under the NCIB as it will allow for purchases of Common Shares to be made at times when the Company would ordinarily not be permitted to make purchases, whether due to regulatory restriction or customary self-imposed blackout periods. Under the ASPP, the Company's broker may purchase Common Shares from the effective date of the ASPP until the end of the NCIB. The ASPP will facilitate purchases of Common Shares under the NCIB by authorizing the Company's broker to make purchases at its sole discretion based on parameters set by the Company in accordance with TSX rules, applicable law and the terms of the ASPP. Outside of periods that the Company is restricted from purchasing Common Shares pursuant to insider trading rules or its own internal trading blackout policies, Common Shares may also be purchased based on management's discretion, in compliance with TSX rules and applicable law. All purchases of Common Shares made under the ASPP will be included in determining the number of Common Shares purchased under the NCIB.
About Dominion Lending Centres Inc.
Dominion Lending Centres Inc. is Canada's leading network of mortgage professionals. DLCG operates through Dominion Lending Centres Inc. and its three main subsidiaries, MCC Mortgage Centre Canada Inc., MA Mortgage Architects Inc. and Newton Connectivity Systems Inc., and has operations across Canada. DLCG extensive network includes over 8,600 agents and over 500 locations. Headquartered in British Columbia, DLC was founded in 2006 by Gary Mauris and Chris Kayat.
DLCG can be found on X (Twitter), Facebook and Instagram and LinkedIn @DLCGmortgage and on the web at www.dlcg.ca.
Investor Contact:
| Eddy Cocciollo | James Bell |
| President | EVP, Corporate and Chief Legal Officer |
| 647-403-7320 | 403-560-0821 |
| eddy@dlc.ca | jbell@dlcg.ca |
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/254194
FAQ
What is the size of Dominion Lending Centres' (DLCG) new share buyback program?
When does DLCG's Normal Course Issuer Bid (NCIB) start and end?
What is the daily purchase limit for DLCG's share buyback program?
How will DLCG's Automatic Share Purchase Plan (ASPP) work?
What is DLCG's strategy for capital allocation?
