The INX Digital Company, Inc., the owner of digital asset trading platforms, is pleased to announce that it intends to implement a normal course issuer bid (the “NCIB“) program to repurchase common shares of the Company (“Common Shares“).
Pursuant to the NCIB, which has been accepted by the NEO Exchange, the Company may purchase up to a maximum of 10,206,807 Common Shares, representing approximately 5% of the issued and outstanding Common Shares as of March 18, 2022, provided that the aggregate purchase price for any Common Shares acquired under the NCIB and for any tokens of INX Limited (“INX Tokens“) acquired under its previously disclosed token repurchase program must not exceed US$5 million. As of March 18, 2022, no INX Tokens have been repurchased by the Company under the token repurchase program, which was announced on December 20, 2021.
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Purchases under the NCIB may be made through open market transactions on the NEO Exchange and/or any Canadian alternative trading systems on which the Common Shares are traded, based on the prevailing market price. In accordance with NEO Exchange rules, daily purchases (other than pursuant to a block purchase exception) under the NCIB cannot exceed the greater of 1,000 Common Shares and 25% of the average daily trading volume on the NEO Exchange as measured from January 24, 2022 to March 18, 2022. Any Common Shares purchased under the NCIB will be cancelled.
Transactions under the NCIB will depend on future market conditions. The Company will retain discretion whether to make purchases under the NCIB, and to determine the timing, amount, and acceptable price of any such purchases, subject at all times to applicable NEO Exchange and other regulatory requirements. The Company believes that the purchase of Common Shares from time to time can be undertaken at prices that do not fully reflect their value. The Company believes that, in such circumstances, the repurchase of Common Shares represents an appropriate use of the Company’s available funds to support shareholder value.
The Company intends to appoint PI Financial Corp. (“PI Financial“) as the broker through which the Company will conduct purchases under the NCIB, which purchases will be completed pursuant to the policies of the NEO Exchange. The Company and PI Financial intend on entering into an issuer repurchase plan agreement outlining the terms upon which the NCIB will be conducted.
The period during which the Company will be authorized to make purchases under the NCIB will commence on March 23, 2022 and end the earlier of (i) March 23, 2023, and (ii) such earlier date on which the maximum number of Common Shares are purchased under the NCIB. The Company has not purchased any Common Shares during the previous year pursuant to any issuer bid.