Crescita Therapeutics Announces Approval of Normal Course Issuer Bid

Rhea-AI Summary

Crescita Therapeutics approved for normal course issuer bid to purchase up to 10% of its public float, management believes current market price may not reflect underlying value of the company.

Positive

• Approval of normal course issuer bid allows for potential repurchase of shares at market price

Negative

• None.

LAVAL, Quebec--(BUSINESS WIRE)-- Crescita Therapeutics Inc. (TSX: CTX) (OTC US: CRRTF) (“Crescita” or the “Company”) announced today that the Toronto Stock Exchange (the “TSX”) has approved the Company’s proposed normal course issuer bid (“NCIB”) to purchase up to a maximum of 1,821,616 common shares (“Common Shares”) for cancellation, representing approximately 10% of its public float as of August 18, 2023, as appropriate opportunities arise from time to time. As of August 27, 2023, the Company had 20,374,153 issued and outstanding Common Shares.

Crescita’s management and board of directors believe that the current market price of the Common Shares may not represent the underlying value of the Company and has determined that, subject to future price movements and other factors, the repurchase of such Common Shares may be a desirable use of funds and in the best interests of the Company and its shareholders.

Purchases under the NCIB will be made through the facilities of the TSX or through a Canadian alternative trading system and in accordance with applicable regulatory requirements at a price per Common Share representative of the market price at the time of acquisition. The number of Common Shares that can be purchased pursuant to the NCIB is subject to a current daily maximum of 3,661 Common Shares (which is equal to 25% of 14,646 being the average daily trading volume from February 1, 2023 through to July 31, 2023), subject to the Company’s ability to make one block purchase of Common Shares per calendar week that exceeds such limits. All Common Shares purchased under the NCIB will be cancelled upon their purchase. The Company intends to fund the purchases from its available resources.

The Company may begin to purchase Common Shares on August 31, 2023 and the NCIB will terminate on August 30, 2024 or such earlier time as the Company completes its purchases pursuant to the NCIB or provides notice of termination. The Company has also entered into an automatic securities purchase plan in connection with its NCIB that contains strict parameters regarding how its Common Shares may be repurchased during times when it would ordinarily not be permitted to purchase Common Shares due to regulatory restrictions or self-imposed blackout periods. The automatic securities purchase plan is effective immediately.

Pursuant to the Company’s previous normal course issuer bid that commenced on December 17, 2021 and ended on December 16, 2022, 663,600 Common Shares at a weighted average price of $0.66 per share were purchased. Purchases were made on behalf of the Company by its broker through the facilities of the TSX. Crescita was permitted to acquire up to 1,000,000 Common Shares under its previous normal course issuer bid.

About Crescita Therapeutics Inc.
Crescita (TSX: CTX and OTC US: CRRTF) is a growth-oriented, innovation-driven Canadian commercial dermatology company with in-house R&D and manufacturing capabilities. The Company offers a portfolio of high-quality, science-based non-prescription skincare products and early to commercial stage prescription products. We also own multiple proprietary transdermal delivery platforms that support the development of patented formulations to facilitate the delivery of active ingredients into or through the skin. For more information visit, www.crescitatherapeutics.com.

Forward-looking Information
This press release contains “forward-looking information” within the meaning of applicable securities laws. All information in this press release, other than statements of current and historical fact, represents forward-looking information and is qualified by this cautionary note. Often, but not always, forward-looking information can be identified by words such as: “anticipate”, “intend”, “plan”, “goal”, “seek”, “believe”, “aim”, “project”, “estimate”, “expect”, “strategy”, “future”, “likely”, “may”, “should”, “will” and similar references to future periods.

Examples of forward-looking information include, but are not limited to, statements made in this press release relating to the number of Common Shares to be acquired under the NCIB and other related matters.

Forward-looking information is neither historical fact nor an assurance of future performance. Instead, it based only on current beliefs, expectations, and assumptions regarding the future of the Company’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions.

Because forward-looking information relates to the future, it is subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company’s control.

Crescita’s actual results and financial condition may differ materially from those indicated in forward-looking information. Therefore, you should not unduly rely on any forward-looking information. Important factors that could cause Crescita’s actual results and financial condition to differ materially from those indicated in forward-looking information include, among others:

• economic and market conditions including the uncertainty in the global economy;
• the impact of inflation and rising interest rates together with the threats of stagflation and recession;
• the Company’s ability to execute its growth strategies;
• the degree or lack of market acceptance of the Company’s products;
• reliance on third parties for marketing, distribution and commercialization, and clinical trials;
• the impact of changing conditions in the regulatory environment and product development processes;
• manufacturing and supply risks;
• increasing competition in the industries in which the Company operates;
• the Company’s ability to meet its contractual obligations;
• the impact of product liability matters;
• the impact of litigation involving the Company and/or its products;
• the impact of changes in relationships with customers and suppliers;
• the degree of intellectual property protection of the Company’s products;
• developments and changes in applicable laws and regulations; and
• other risk factors described from time to time in the reports and disclosure documents filed by Crescita with Canadian securities regulatory agencies and commissions, including the sections entitled “Risk Factors” in the Company’s most recent annual MD&A and AIF.

As a result of the foregoing and other factors, no assurance can be given that future results, levels of activity or achievements indicated in any forward-looking information will actually be achieved or that the Company will actually decide to purchase any Common Shares pursuant to the NCIB. Any forward-looking information in this press release is based only on information currently available to management and speaks only as of the date on which it is provided. Except as required by applicable securities laws, Crescita undertakes no obligation to publicly update any forward-looking information, whether written or oral, that may be provided from time to time, whether as a result of new information, future developments or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230829025923/en/

FOR MORE INFORMATION, PLEASE CONTACT:

Investor Relations

Linda Kisa, CPA, CA

Email: lkisa@crescitatx.com

Source: Crescita Therapeutics