Atrium Mortgage Investment Corporation Announces Normal Course Issuer Bid

Rhea-AI Summary

Atrium Mortgage Investment announced the acceptance of a normal course issuer bid (NCIB) by the Toronto Stock Exchange. The NCIB allows Atrium to purchase up to 4,232,634 common shares (10% of the public float) from June 24, 2024, to June 23, 2025. Purchases will be made at market prices and will be conducted via open market transactions. An automatic share purchase plan (ASPP) has been implemented to facilitate purchases during blackout periods. As of June 10, 2024, Atrium had 44,313,954 common shares outstanding. The previous NCIB, which expires June 23, 2024, saw 37,527 shares purchased at an average price of $10.08 per share.

Positive

• The NCIB allows Atrium to purchase up to 4,232,634 common shares, representing 10% of the public float.
• Purchases will be made at market prices, indicating confidence in the current valuation.
• An automatic share purchase plan (ASPP) facilitates purchases during blackout periods, ensuring continued share buybacks.
• The previous NCIB resulted in the purchase of 37,527 shares at an average price of $10.08, reflecting a proactive approach to share repurchases.

Negative

• The completion of only 37,527 shares under the previous NCIB suggests repurchasing activity.
• The average daily trading volume of 34,968 shares limits the capacity for daily purchases under the new NCIB to 8,742 shares, potentially slowing down the repurchase process.

Toronto, Ontario--(Newsfile Corp. - June 17, 2024) - Atrium Mortgage Investment Corporation (TSX: AI) (TSX: AI.DB.C) (TSX: AI.DB.D) (TSX: AI.DB.E) (TSX: AI.DB.F) (TSX: AI.DB.G) ("Atrium") announced today that the Toronto Stock Exchange (the "TSX") has accepted a notice filed by Atrium of its intention to make a normal course issuer bid (the "NCIB") with respect to its outstanding common shares.

The notice provides that Atrium may, during the 12 month period commencing June 24, 2024 and ending no later than June 23, 2025, purchase through the facilities of the TSX and/or alternative Canadian Trading Systems up to 4,232,634 common shares in total, being 10% of the "public float" of common shares as of June 10, 2024. The price which Atrium will pay for any common shares will be the market price at the time of acquisition. During the period of this NCIB, Atrium may make purchases under the NCIB by means of open market transactions. The actual number of common shares which may be purchased pursuant to the NCIB and the timing of any such purchases will be determined by senior management of Atrium. The average daily trading volume from December 1, 2023 to May 31, 2024 was 34,968 common shares. Daily purchases under the NCIB will be generally limited to 8,742 common shares, other than block purchases. All shares purchased by Atrium under the NCIB will be cancelled.

As of June 10, 2024, there were 44,313,954 common shares of Atrium outstanding, and the public float was 42,326,343 common shares.

Atrium may purchase its common shares, from time to time, if it believes that the market price of its common shares is attractive and that the purchase would be an appropriate use of corporate funds and in the best interests of Atrium.

In connection with the NCIB, Atrium has entered into an automatic share purchase plan ("ASPP") with a designated broker to facilitate the purchase of common shares under the NCIB, including at times when Atrium would ordinarily not be permitted to purchase its common shares due to regulatory restrictions or self-imposed blackout periods. During restricted or blackout periods, purchases under the ASPP will be determined by the designated broker in its sole discretion based on the purchasing parameters set by Atrium in accordance with the rules of the TSX, applicable securities laws and the terms of the ASPP. Outside of the restricted and blackout periods, the timing and amount of purchases under the NCIB will be determined by senior management of Atrium. The ASPP has been pre-cleared by the TSX and will become effective on June 24, 2024, concurrently with the commencement of the NCIB. All purchases made under the ASPP will be included in computing the number of common shares purchased under the NCIB.

Pursuant to a previous notice of intention to conduct a NCIB, under which Atrium sought and received approval from the TSX to purchase up to 4,176,336 common shares for the period of June 24, 2023 to June 23, 2024, Atrium purchased for cancellation, as of June 10, 2024, 37,527 common shares at a weighted average price per share of $10.08. Atrium's previous NCIB expires on June 23, 2024.

About Atrium

Canada's Premier Non-Bank Lender™

Atrium is a non-bank provider of residential and commercial mortgages that lends in major urban centres in Canada where the stability and liquidity of real estate are high. Atrium's objectives are to provide its shareholders with stable and secure dividends and preserve shareholders' equity by lending within conservative risk parameters.

Atrium is a Mortgage Investment Corporation (MIC) as defined in the Income Tax Act (Canada), so is not taxed on income provided that its taxable income is paid to its shareholders in the form of dividends within 90 days after December 31 each year. Such dividends are generally treated by shareholders as interest income, so that each shareholder is in the same position as if the mortgage investments made by the company had been made directly by the shareholder. For further information, please refer to regulatory filings available at www.sedarplus.ca or Atrium's website at www.atriummic.com.

Forward-Looking Statements

This press release contains statements that constitute "forward-looking statements" within the meaning of applicable securities legislation, including, but not limited to, statements relating to future purchases of common shares under the NCIB, including pursuant to the ASPP. Much of this information can be identified by words such as "expect to," "expected," "will," "estimated" or similar expressions suggesting future outcomes or events. Atrium believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.

Forward-looking statements are based on current information and expectations that involve a number of risks and uncertainties, which could cause actual results or events to differ materially from those anticipated. These risks include, but are not limited to, risks associated with Atrium' financial condition and prospects; the stability of general economic and market conditions; interest rates; the availability of cash for repurchases of outstanding common shares under the NCIB; the existence of alternative uses for Atrium's cash resources which may be superior to effecting repurchases under the NCIB; compliance by third parties with their contractual obligations; compliance with applicable laws and regulations pertaining to the NCIB and ASPP; and other risks related to Atrium's business, including those identified in Atrium's annual information form for the year ended December 31, 2023 under the heading "Risk Factors" (a copy of which may be obtained at www.sedarplus.ca) and subsequent filings. Forward-looking statements contained in this press release are made as of the date hereof and are subject to change. All forward-looking statements in this press release are qualified by these cautionary statements. Unless otherwise required by applicable securities laws, we do not intend, nor do we undertake any obligation, to update or revise any forward-looking statements contained in this press release to reflect subsequent information, events, results or circumstances or otherwise.

For further information, please contact

Robert G. Goodall
Chief Executive Officer

John Ahmad
Chief Financial Officer

(416) 867-1053
info@atriummic.com
www.atriummic.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/213274

FAQ

What is the significance of Atrium Mortgage's NCIB announced on June 17, 2024?

The NCIB allows Atrium to repurchase up to 4,232,634 common shares, representing 10% of the public float, from June 24, 2024, to June 23, 2025.

How many shares can Atrium Mortgage repurchase daily under the NCIB?

Atrium can generally repurchase up to 8,742 common shares daily, excluding block purchases.

What is the purpose of the automatic share purchase plan (ASPP) in Atrium Mortgage's NCIB?

The ASPP facilitates share purchases during blackout periods when Atrium would normally be restricted from buying its own shares.

How did Atrium Mortgage perform under its previous NCIB?

Atrium purchased 37,527 shares at an average price of $10.08 per share under the previous NCIB.

When will Atrium Mortgage's new NCIB commence and end?

The new NCIB will commence on June 24, 2024, and end on June 23, 2025.