MARKHAM, ONTARIO--(Marketwire - July 5, 2012) - Extendicare Inc. ("Extendicare" or the "Company") (TSX:EXE) announced today that it has received the approval of the Toronto Stock Exchange (the "TSX") to make a normal course issuer bid (the "Bid") for up to 4,000,000 of its common shares (the "Common Shares") on the TSX.
As of July 1, 2012, there were 85,028,197 Common Shares issued and outstanding. The Company's BID for up to 4,000,000 Common Shares represents approximately 4.8% of the public float on July 1, 2012, calculated in accordance with the rules of the TSX.
Purchases under the Bid may commence on July 9, 2012 and will terminate on July 8, 2013, or on such earlier date as the Bid is complete. The actual number of Common Shares purchased under the Bid and the timing of any such purchases will be at the discretion of the Company. Purchases of Common Shares will be made through the facilities of the TSX in accordance with its rules. Subject to the TSX's block purchase exception, on any trading day, purchases under the Bid will not exceed 46,897 Common Shares. The price that Extendicare will pay for any Common Shares purchased under the Bid will be the prevailing market price at the time of purchase and any Common Shares purchased by the Company will be cancelled. Extendicare Real Estate Investment Trust, the predecessor of the Company, did not purchase any of its trust units or convertible debentures, which were previously listed on the TSX, under its normal course issuer bid which expired on January 6, 2011.
The Board of Directors of Extendicare has authorized the Bid because it believes that it is an appropriate use of the Company's available funds to purchase Common Shares when the market price of the Common Shares does not fully reflect their underlying value. Any Common Shares purchased under the Bid will increase the proportionate interest of, and may be advantageous to, all remaining securityholders.
Extendicare is a leading North American provider of post-acute and long-term senior care services. Through our network of owned and operated health care centers, our qualified and experienced workforce of 35,900 individuals is dedicated to helping people live better through a commitment to quality service that includes skilled nursing care, rehabilitative therapies and home health care services. Our 244 senior care centers in North America have capacity to care for approximately 26,600 residents.
Information provided by Extendicare from time to time, including this release, contains or may contain forward-looking statements concerning anticipated financial events, results, circumstances, economic performance or expectations with respect to Extendicare and its subsidiaries, including its business operations, business strategy, and financial condition. Forward-looking statements can be identified because they generally contain the words "expect", "intend", "anticipate", "believe", "estimate", "project", "plan" or "objective" or other similar expressions or the negative thereof. Forward-looking statements reflect management's beliefs and assumptions and are based on information currently available, and Extendicare assumes no obligation to update or revise any forward-looking statement, except as required by applicable securities laws. These statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of Extendicare to differ materially from those expressed or implied in the statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on Extendicare's forward-looking statements. Further information can be found in the disclosure documents filed by Extendicare with the securities regulatory authorities, available at www.sedar.com and on Extendicare's website at www.extendicare.com.