#Canada #Toronto #TSX #EQB Inc. #Normal Course Issuer Bid

EQB Inc. Announces Enhanced Normal Course Issuer Bid for 2025

On January 2, 2025, EQB Inc. (TSX: EQB) made a notable announcement detailing its renewed normal course issuer bid (NCIB). This strategic move, sanctioned by the Toronto Stock Exchange (TSX), demonstrates the company’s intention to repurchase up to 2,300,000 of its Common Shares, accounting for approximately 8.4% of the public float.

As of December 23, 2024, EQB had 38,448,950 Common Shares issued and outstanding, with a public float of 27,330,184 shares. The newly proposed NCIB will commence on January 6, 2025, and continue until January 5, 2026, unless the program is completed earlier. This period offers EQB a strategic window to optimize its capital management by potentially buying back its shares at favorable market prices.

The specifics of the NCIB include a limit on daily repurchases. On trading days, EQB will not exceed purchases of 13,701 Common Shares, determined based on the average daily trading volume from June 1, 2024, to November 30, 2024, which was set at 54,807 shares. The buybacks will be executed through the TSX and other alternative Canadian trading systems, adhering strictly to TSX regulations.

The Board of Directors of EQB has sanctioned this program, believing that certain market conditions could warrant the repurchase of shares, ultimately benefiting shareholders. They regard the NCIB as a tool to enhance shareholder value while also ensuring flexibility in capital management.

Past performance under the previous NCIB saw EQB repurchase 14,000 Common Shares at an approximate weighted-average price of $97.98 per share, totaling around $1.37 million, including commissions. Notably, no Preferred Shares were acquired under the last program. The earlier NCIB allowed up to 1,150,000 Common Shares and 290,512 Preferred Shares for repurchase.

EQB Inc. is not merely expanding its buyback scheme; it stands as a leading figure within Canada’s digital financial services sector. With total assets under its management and administration reaching $127 billion by October 31, 2024, the company operates banking services through Equitable Bank, its wholly owned subsidiary, recognized as Canada's seventh-largest bank by total assets. Furthermore, EQB provides wealth management services through ACM Advisors, emphasizing their vast expertise in alternative asset management.

As Canada’s Challenger Bank™, EQB is on a mission to transform the banking experience for its customers. This ambition resonates through their utilization of innovative technology, enabling them to provide superior services to nearly 700,000 clients along with more than six million credit union members. The digital platform, EQ Bank (eqbank.ca), enjoys accolades, having been listed among the top banks on Forbes World's Best Banks since 2021.

However, as EQB moves forward with its NCIB, they are also cautious about future developments. The company is aware of the broader economic factors that could influence their share performance and potential repurchases. Forward-looking statements regarding the timing and number of shares purchased under the NCIB are affected by various uncertainties such as market conditions and the overall economic climate.

While the company expresses its intent to acquire shares under the NCIB, it also retains the flexibility to pause purchases when deemed necessary. This level of prudence underscores EQB's proactive approach in navigating the complexities of capital markets and ensuring sustained value for its shareholders.

Overall, this expanded NCIB not only aims to fortify EQB's standing within the market but also illustrates their commitment to shareholder prosperity amidst ever-evolving market dynamics. For updates and further information, investors can refer to EQB’s Investor Relations page.