Automotive Finco Corp. Announces Preliminary Results of Substantial Issuer Bid

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TORONTO, March 19, 2021 (GLOBE NEWSWIRE) -- Automotive Finco Corp. (TSX-V: AFCC) (“AFCC” or the “Company”) announced today the preliminary results of its “modified Dutch auction” substantial issuer bid (the “Offer”). Under the Offer, the Company offered to purchase for cancellation up to $12,375,000 of its common shares (the “Shares”) from shareholders for cash. The Offer expired at 5:00 p.m. (Toronto time) on March 18, 2021.

In accordance with the terms and conditions of the Offer and based on the preliminary count by Computershare Trust Company of Canada, as depositary for the Offer (the “Depositary”), AFCC expects to take up and purchase for cancellation approximately 3,304,332 Shares (including Shares tendered by notice of guaranteed delivery) at a purchase price of $1.65 per Share (the “Purchase Price”), representing an aggregate purchase price of approximately $5,452,148. The Shares expected to be purchased under the Offer represent approximately 14.29% of the Shares issued and outstanding before giving effect to the Offer. After giving effect to the Offer, approximately 19,819,441 Shares are expected to be issued and outstanding.

“We are happy to have completed our substantial issuer bid and to have been able to give shareholders the liquidity opportunity that it provided,” said Kuldeep Billan, AFCC’s Chief Executive Officer.

The full details of the Offer are described in the issuer bid circular dated February 8, 2021, as well as the related letter of transmittal and notice of guaranteed delivery, copies of which were filed and are available on SEDAR at www.sedar.com.                

As the total number of Shares tendered was less than the total that could have been acquired by the Company under the terms of the Offer, all Shares validly deposited and not withdrawn prior to the expiry of the Offer will be acquired and no proration will be required.

The number of Shares to be purchased under the Offer and the Purchase Price are preliminary, subject to verification by the Depositary, and assume that all Shares tendered through notice of guaranteed delivery will be delivered within the two trading day settlement period. AFCC will announce the final results following completion of the take-up of the Shares.