VANCOUVER, BC, Jan. 18, 2024 /PRNewswire/ - Aritzia Inc. ("Aritzia" or the "Company") (TSX: ATZ) today announced that the Toronto Stock Exchange ("TSX") has accepted its notice of intention to proceed with a normal course issuer bid ("NCIB").
Under the NCIB, Aritzia may purchase up to 3,515,740 of its subordinate voting shares ("Shares"), representing approximately 5% of the public float of 70,314,808 Shares, during the twelve-month period commencing January 22, 2024 and ending January 21, 2025. As at January 8, 2024, there were 90,013,301 Shares issued and outstanding. Under the NCIB, other than purchases made under block purchase exemptions, Aritzia may purchase up to 116,671 Shares on the TSX during any trading day, which represents approximately 25% of the average daily trading volume on the TSX for the most recently completed six calendar months (being 466,685 Shares) prior to the TSX's acceptance of the notice of the NCIB. Any Shares purchased under the NCIB will be cancelled.
Aritzia's Board of Directors believes that an NCIB represents an appropriate and desirable use of its available cash, after prioritizing investments in boutiques and strategic infrastructure, to increase shareholder value and is in the best interest of Aritzia and its shareholders. As at November 26, 2023, the Company had approximately $140.8 million of cash and cash equivalents. Any purchases made under the NCIB will be made by Aritzia subject to favourable market conditions at the prevailing market price at the time of acquisition through the facilities of the TSX and/or alternative Canadian trading systems.
Although the Company presently intends to purchase Shares under its NCIB, there can be no assurances that any such purchases will be completed. Any purchases made under NCIB will be made by Aritzia at the prevailing market price at the time of acquisition and through the facilities of the TSX or alternative Canadian trading systems, as applicable. The Company may rely on an automatic purchase plan during the NCIB. The automatic purchase plan would allow for purchases by the Company of Shares during certain pre-determined blackout periods, subject to certain parameters and approval of the TSX.
Pursuant to the Company's prior normal course issuer bid, the Company sought and received approval from the TSX to purchase up to 3,860,745 of its Shares for the period from January 20, 2023 to January 19, 2024. As of January 17, 2024, the Company has repurchased a total of 1,089,641 Shares on the market for cancellation at a volume weighted average price of $27.51 per Share for total cash consideration of $30.0 million under that prior bid.
Aritzia is a design house with an innovative global platform. We are creators and purveyors of Everyday Luxury, home to an extensive portfolio of exclusive brands for every function and individual aesthetic. We're about good design, quality materials, and timeless style — all with the wellbeing of our People and Planet in mind.
Founded in 1984, in Vancouver, Canada, we pride ourselves on creating immersive, highly personalized shopping experiences at aritzia.com and in our 115+ boutiques throughout North America - for everyone, everywhere.
Aritzia means style, not trend, and quality over everything. We treat each in-house label as its own atelier, united by premium fabrics, meticulous construction and an of-the-moment point of view. We handpick fabrics from the world's best mills for their feel, function and ability to last. We obsess over proportion, fit and that just-right silhouette. From hand-painted prints to the art of pocket placement, our innovative design studio considers and reconsiders each detail to create essentials you'll reach for again, and again, and again.
Everyday Luxury. To Elevate Your World.™
Certain statements made in this press release may constitute forward-looking information under applicable securities laws, including statements related to the Company's NCIB, investments in boutiques and strategic infrastructure, future purchases of Shares pursuant to the NCIB and, if applicable, an automatic purchase plan. Particularly, information regarding our expectations of future results, targets, performance achievements, intentions, prospects, opportunities or other characterizations of future events or developments in the markets in which we operate is forward-looking information. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "targets", "expects", "is expected", "an opportunity exists", "budget", "scheduled", "estimates", "outlook", "forecasts", "projection", "prospects", "strategy", "intends", "anticipates", "believes", or positive or negative variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will", "will be taken", "occur", "continue", or "be achieved". Statements containing forward-looking information are not historical facts nor assurances of future performance but instead represent our current expectations, estimates and projections regarding future events or circumstances. Readers are cautioned that such information may not be appropriate for other purposes. Although the Company believes that the forward-looking statements are based on information, assumptions and beliefs that are current, reasonable, and complete, such information is necessarily subject to a number of business, economic, competitive and other risk factors that could cause actual results to differ materially from management's expectations and plans as set forth in such forward-looking information.
Given the current challenging operating environment, there can be no assurances regarding: (a) pandemic-related limitations or restrictions that may be placed on servicing our clients or the duration of any such limitations or restrictions; (b) the macroeconomic impacts (including those from the recent COVID-19 pandemic) on Aritzia's business, operations, labour force, supply chain performance and growth strategies; (c) Aritzia's ability to mitigate such impacts, including ongoing measures to enhance short-term liquidity, contain costs and safeguard the business; (d) general economic conditions and impacts to consumer discretionary spending and shopping habits (including impacts from changes to interest rate environments); (e) credit, market, currency, commodity market, inflation, interest rates, global supply chains, operational, and liquidity risks generally; (f) geopolitical events; and (g) other risks inherent to Aritzia's business and/or factors beyond its control which could have a material adverse effect on the Company.
Many factors could cause our actual results, performance, achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the factors discussed in the "Risk Factors" section of the Company's annual information form dated May 2, 2023 for the fiscal year ended February 26, 2023 (the "AIF"). A copy of the AIF and the Company's other publicly filed documents can be accessed under the Company's profile on SEDAR+ at www.sedarplus.ca.
The Company cautions that the list of risk factors and uncertainties described in the AIF is not exhaustive and other factors could also adversely affect its results. We operate in a highly competitive and rapidly changing environment in which new risks often emerge. It is not possible for management to predict all risks, nor assess the impact of all risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. The forward-looking information contained in this press release represents our expectations as of the date of this press release (or as of the date they are otherwise stated to be made) and are subject to change after such date. We disclaim any intention, obligation or undertaking to update or revise any forward-looking information, whether written or oral, as a result of new information, future events or otherwise, except as required under applicable securities laws.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this statement.
SOURCE Aritzia Inc.(Communications)
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