Melcor Developments Ltd. Announces Normal Course Issuer Bid

EDMONTON, Alberta, March 30, 2021 (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, 2021 and ending March 31, 2022, purchase for cancellation up to 1,654,553 common shares in total, being approximately 5% of its issued and outstanding common shares. The daily repurchase restriction for the common shares is 3,781.

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, 2021, 109,416 common shares were purchased for cancellation through the facilities of the TSX during the last twelve months (as of March 18, 2021) at a weighted average price per common share of $6.53 (1,661,033 had been approved for repurchase). As of March 18, 2021 there were 33,091,061 common shares of Melcor outstanding with an average daily trading volume for the prior six months of 15,126.

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.

In connection with commencement of the NCIB the Corporation also announced that it has entered into an automatic share purchase plan agreement (“ASPP”) with a broker to allow for the purchase of common shares under the NCIB at times when the Corporation ordinarily would not be active in the market due to regulatory restrictions or self-imposed trading blackout periods. Before entering into such restricted or blackout period, the Corporation may, but is not required to, instruct the designated broker to make purchases under the NCIB in accordance with the terms of the ASPP. Such purchases will be determined by the broker in its sole discretion based on parameters established by the Corporation prior to the restricted or blackout period in accordance with TSX rules, applicable securities laws and the terms of the ASPP. Outside of these pre-determined restricted or blackout periods, common shares will be purchased based on management's discretion, in compliance with TSX rules and applicable securities laws.