Normal Course Issuer Bid
Toronto | February 2, 2016
AGF Management Limited (“AGF”) announced today that the Toronto Stock Exchange (“TSX”) has approved AGF’s notice of intention to renew its normal course issuer bid in respect of its Class B Non-Voting Shares (AGF.b).
As at January 26, 2016, there were 79,675,8281 Class B Non-Voting Shares issued and outstanding and the public float consisted of 46,640,421 Class B Non-Voting Shares.
Under the announced normal course issuer bid, AGF is permitted to purchase up to 4,664,042 Class B Non-Voting Shares, representing approximately 10% of the public float for such shares as of January 26, 2016. Purchases under the normal course issuer bid may commence on February 4, 2016 and continue until February 3, 2017, when the bid expires. AGF may rely on an automatic purchase plan during the normal course issuer bid. The automatic purchase plan allows for purchases by AGF of its Class B Non-Voting Shares during certain pre-determined black-out periods, subject to certain parameters. Outside of these pre-determined black-out periods, shares will be purchased in accordance with management’s discretion.
Under the announced normal course issuer bid, purchases may be made through the facilities of TSX, alternative Canadian trading systems /other published markets, or as otherwise permitted by the TSX. The average daily trading volume (“ADTV”) of the Class B Non-Voting Shares (for the six month period ended January 31, 2016) on the TSX was 250,658. Under the rules of the TSX, AGF is entitled to repurchase during the same trading day on the TSX up to 25% of the ADTV of its Class B Non-Voting Shares, being 62,664 except where reliance is placed on the TSX’s block purchase exemption.
Class B Non-Voting Shares purchased under the NCIB will be canceled or purchased and held by the AGF Employee Benefit Trust for the settlement of equity settled incentive plans by AGF. The directors believe that the purchase for cancellation of Class B Non-Voting Shares represents a desirable use of capital when, if in the opinion of management, the value of the Class B Non-Voting shares is attractive relative to the trading price of said shares. Purchase for cancellation by AGF of outstanding Class B Non-Voting Shares may also be used to offset the dilutive effect of treasury stock released for the employee benefit trust and of shares issued through AGF’s stock option plans and dividend reinvestment plan.
AGF acquired 4,905,430 Class B Non-Voting Shares at a weighted average price of $5.98 under its existing normal course issuer bid, which expires on February 3, 2016.
AGF Management Limited is one of Canada's premier independent investment management firms with offices across Canada and subsidiaries around the world. AGF's products include a diversified family of mutual funds, mutual fund wrap programs and pooled funds. AGF also manages assets on behalf of institutional investors including pension plans, foundations and endowments as well as for private clients. With over $32 billion in total assets under management, AGF serves more than one million investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.
Robert J. Bogart
Executive Vice-President and Chief Financial Officer
Senior Vice-President, Finance
This release includes forward-looking statements. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as ‘expects,’ ‘anticipates,’ ‘intends,’ ‘plans,’ ‘believes’ or negative versions thereof and similar expressions, or future or conditional verbs such as ‘may,’ ‘will,’ ‘should,’ ‘would’ and ‘could.’ Forward-looking statements are based on certain factors and assumptions, including expected growth, results of operations, economic factors, business prospects, business performance and opportunities. While the company considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements due to, but not limited to, important risk factors such as level of assets under management, volume of sales and redemptions of investment products, performance of investment funds and of investment managers and advisors, competitive fee levels for investment management products and administration, and competitive dealer compensation levels and cost efficiency in our investment management operations, as well as interest and foreign-exchange rates, taxation, changes in government regulations, unexpected judicial or regulatory proceedings, and the company’s ability to complete strategic transactions and integrate acquisitions. The company cautions that the foregoing list is not exhaustive. The reader is cautioned to consider these and other factors carefully and not place undue reliance on forward-looking statements. Forward-looking statements are given only as at the date of this release and other than specifically required by applicable laws, the company is under no obligation (and expressly disclaims any such obligation) to update or alter the forward-looking statements, whether as a result of new information, future events or otherwise. Additional risks and uncertainties can be found in our MD&A for the fiscal year ended November 30, 2015 under the headings “Caution Regarding Forward-Looking Statements” and “Risk Factors and Management of Risk” and in our other filings with Canadian securities regulatory authorities.
1Includes treasury stock in the amount of 1,140,762.