MELCOR DEVELOPMENTS LTD. ANNOUNCES NORMAL COURSE ISSUER BID

EDMONTON, Alberta, March 30, 2020 (GLOBE NEWSWIRE) -- Melcor Developments Ltd. (TSX:MRD), an Alberta-based real estate development and asset management company, announced today that the Toronto Stock Exchange has accepted its notice of intention to make a normal course issuer bid through the facilities of the TSX and on alternative trading systems.

The notice provides that Melcor may, during the twelve-month period commencing April 1, 2020 and ending March 31, 2021, purchase for cancellation up to 1,661,033 common shares in total, being approximately 5% of its issued and outstanding common shares. The daily repurchase restriction for the common shares is 1,000.

In accordance with temporary relief announced by the TSX on March 23, 2020, the number of Shares that can be purchased pursuant to the NCIB is subject to a current daily maximum of 1,616 Shares (which is equal to 50% of 3,233, being the average daily trading volume from September 1, 2019 through to February 29, 2020). Following the expiry of such temporary relief on June 30, 2020 (or such later date as may be announced by the TSX), the number of Shares that can be purchased pursuant to the NCIB will be subject to a daily maximum of 1,000 Shares (which is the greater of 25% of 3,233 or 1,000).

The price which Melcor will pay for any such common shares will be the market price at the time of acquisition. The actual number of common shares which may be purchased and the timing of any such purchases will be subject to compliance with the TSX guidelines.

Under the current normal course issuer bid due to expire March 31, 2020, 74,100 common shares were purchased for cancellation through the facilities of the TSX during the last twelve months (as of March 18, 2020) at a weighted average price per common share of $12.14 (1,665,080 had been approved for repurchase). As of March 18, 2020 there were 33,220,677 common shares of Melcor outstanding with an average daily trading volume for the prior six months of 3,233.

Melcor believes that, at times, its common shares trade in a price range which does not adequately reflect the value of such common shares in relation to the business of Melcor and its future business prospects. As a result, depending upon future price movements and other factors, Melcor believes that its outstanding common shares may represent an attractive investment for itself. Furthermore, the purchases may benefit all persons who continue to hold common shares by increasing their equity interest in Melcor. All common shares purchased by Melcor under the normal course issuer bid will be cancelled.