Automotive Finco Corp. Announces Intention to Repurchase up to $12,375,000 of its Common Shares pursuant to a Substantial Issuer Bid

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TORONTO, Feb. 08, 2021 (GLOBE NEWSWIRE) -- Automotive Finco Corp. (TSX-V: AFCC) (“AFCC” or the “Company”) is announcing today that, further to its press release of December 18, 2020, it intends to make a substantial issuer bid (the “Offer”) pursuant to which AFCC will offer to repurchase for cancellation up to $12,375,000 of its outstanding common shares (the “Shares”) from shareholders for cash.  AFCC also announces that at a shareholders’ meeting held on January 29, 2021, shareholders approved a special resolution reducing the stated capital of the Company. 

The Offer will proceed by way of a modified “Dutch auction”, which will allow shareholders to select the price, within the specified range, at which each shareholder is willing to sell all or a portion of the Shares that such shareholder owns. Shareholders who wish to participate in the Offer will be able to do so through (i) auction tenders in which they will specify the number of Shares being tendered at a price of not less than $1.60 per Share and not more than $1.65 per Share in increments of $0.01 per Share or (ii) purchase price tenders in which they will not specify a price per Share, but will rather agree to have a specified number of Shares purchased at the purchase price to be determined under the Offer. When the Offer expires, AFCC will select the purchase price of the tendered Shares which will be the lowest tendered price within the range of prices, enabling the Company to purchase up to the maximum number of Shares validly tendered to the Offer. All Shares tendered at or below the selected price level will be bought at the purchase price. If the aggregate cost to purchase the tendered Shares exceeds $12,375,000, the Company will accept such Shares on a pro-rata basis after giving effect to “odd lot” tenders, which will not be subject to pro-ration. All Shares tendered at prices higher than the final purchase price will be returned to shareholders.