DeFi Technologies Announces Launch of Normal Course Issuer Bid

Rhea-AI Summary

On June 6, 2024, DeFi Technologies announced its intention to commence a Normal Course Issuer Bid (NCIB) starting from June 10, 2024, until June 9, 2025. Under the NCIB, DeFi Technologies plans to buy back up to 10% of its public float, equating to 26,996,392 common shares, through CBOE Canada Inc. and other Canadian trading platforms. The company believes its current market price doesn't reflect its true value and considers the buyback a good use of its C$69.9 million cash balance. All purchased shares will be cancelled, and daily purchases won't exceed 25% of the average daily trading volume from December 2023 to May 2024. Ventum Financial Corp. will manage the NCIB.

Positive

• DeFi Technologies plans to utilize approximately C$69.9 million in cash for share buybacks.
• The NCIB allows for the repurchase of up to 10% of the public float or 26,996,392 common shares.
• The buyback aims to enhance shareholder value by potentially increasing share prices.
• The NCIB received approval from both the company's board of directors and the Exchange.

Negative

• The market price of DeFi Technologies' shares is perceived by management to not reflect the company’s true value.
• There is a risk of liquidity as daily purchases cannot exceed 25% of the average daily trading volume.

TORONTO, June 6, 2024 /PRNewswire/ - DeFi Technologies Inc. (the "Company" or "DeFi Technologies") (Cboe CA: DEFI) (GR: R9B) (OTC: DEFTF), a financial technology company that pioneers the convergence of traditional capital markets with the world of decentralised finance ("DeFi"), is pleased to announce its intention to commence a Normal Course Issuer Bid ("NCIB") to buy back common shares of the Company (the "Common Shares") through the facilities of CBOE Canada Inc. (the "Exchange") and/or other Canadian alternative trading platforms.  The actual number of Common Shares that may be purchased under the NCIB and the exact timing of such purchases will be determined by the Company.

The Company is undertaking the NCIB because its management believes that, currently, and from time to time, the market price of its Common Shares may not reflect the underlying value of the Company's business and prospects. Management believes that, at such times, the purchase of Common Shares for cancellation would be in the best interests of the Company's shareholders and an appropriate use of its cash on hand. The Company's current cash balance is approximately C$69.9 million (US$51 million).

The NCIB has been approved by the Company's board of directors and accepted by the Exchange and will be executed in accordance with the applicable rules and policies of the Exchange and any applicable Canadian securities laws. The NCIB shall commence on June 10, 2024 and run through June 9, 2025 or on such earlier date as the NCIB is complete.

Under the terms of the NCIB, the Company may, if considered advisable, purchase its Common Shares in open market transactions through the facilities of the Exchange and/or other Canadian alternative trading platforms not to exceed up to 10% of the public float for the Common Shares as of June 3, 2024 or 26,996,392 Common Shares, purchased in aggregate. The price that the Company will pay for the Common Shares shall be the prevailing market price at the time of purchase and all purchased Common Shares will be cancelled by the Company. In accordance with Exchange rules, daily purchases (other than pursuant to a block purchase exception) on the Exchange under the NCIB cannot exceed 25% of the average daily trading volume on the Exchange as measured from December 1, 2023 to May 31, 2024.

The Company has appointed Ventum Financial Corp. to coordinate and facilitate purchases under the NCIB.

About DeFi Technologies
DeFi Technologies Inc. (CBOE CA: DEFI) (GR: R9B) (OTC: DEFTF) is a financial technology company that pioneers the convergence of traditional capital markets with the world of decentralized finance (DeFi). With a dedicated focus on industry-leading Web3 technologies, DeFi Technologies aims to provide widespread investor access to the future of finance. Backed by an esteemed team of experts with extensive experience in financial markets and digital assets, we are committed to revolutionizing the way individuals and institutions interact with the evolving financial ecosystem. Join DeFi Technologies' digital community on Linkedin and Twitter, and for more details, visit https://defi.tech/ 

About Valour
Valour Inc. and Valour Digital Securities Limited (together, "Valour") issues exchange traded products ("ETPs") that enable retail and institutional investors to access digital assets like Bitcoin in a simple and secure way via their traditional bank account. Valour is part of the asset management business line of DeFi Technologies Inc. (CBOE CA: DEFI) (GR: R9B) (OTC: DEFTF).

In addition to their novel physical backed digital asset platform, which includes 1Valour Bitcoin Physical Carbon Neutral ETP, 1Valour Ethereum Physical Staking, and 1Valour Internet Computer Physical Staking, Valour offers fully hedged digital asset ETPs with low to zero management fees, with product listings across European exchanges, banks and broker platforms. Valour's existing product range includes Valour Uniswap (UNI), Cardano (ADA), Polkadot (DOT), Solana (SOL), Avalanche (AVAX), Cosmos (ATOM), Binance (BNB), Ripple (XRP), Toncoin (TON), Internet Computer (ICP), Chainlink (LINK) Enjin (ENJ), Valour Bitcoin Staking (BTC), Bitcoin Carbon Neutral (BTCN), Valour Digital Asset Basket 10 (VDAB10) and 1Valour STOXX Bitcoin Suisse Digital Asset Blue Chip ETPs with low management fees. Valour's flagship products are Bitcoin Zero and Ethereum Zero, the first fully hedged, passive investment products with Bitcoin (BTC) and Ethereum (ETH) as underlyings which are completely fee free.

For more information on Valour, to subscribe, or to receive updates and financial information, visit valour.com.

About Reflexivity Research
Reflexivity Research LLC is a leading research firm specializing in the creation of high-quality, in-depth research reports for the bitcoin and digital asset industry, empowering investors with valuable insights. For more information please visit https://www.reflexivityresearch.com/

Cautionary note regarding forward-looking information:
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to statements regarding to the NCIB;  the development and listing of future ETPs; the regulatory environment with respect to the growth and adoption of decentralized finance; the pursuit by the Company and its subsidiaries of business opportunities; and the merits or potential returns of any such opportunities. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company, as the case may be, to be materially different from those expressed or implied by such forward-looking information. Such risks, uncertainties and other factors include, but is not limited the acceptance of Valour exchange traded products by exchanges; growth and development of decentralised finance and cryptocurrency sector; rules and regulations with respect to decentralised finance and cryptocurrency; general business, economic, competitive, political and social uncertainties. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

THE CBOE CANADA EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

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SOURCE DeFi Technologies Inc.

FAQ

What is DeFi Technologies' NCIB?

DeFi Technologies' NCIB is a program to buy back up to 10% of its public float or 26,996,392 common shares from June 10, 2024, to June 9, 2025.

When will DeFi Technologies start its share buyback program?

DeFi Technologies will start its share buyback program on June 10, 2024.

How will DeFi Technologies fund its NCIB?

DeFi Technologies will use its cash balance of approximately C$69.9 million (US$51 million) to fund the NCIB.

What is the significance of DeFi Technologies' share buyback?

The share buyback is intended to enhance shareholder value by potentially increasing the share price and reflecting the company's true value.