CALGARY, Sept. 19 /CNW/ - Genesis Land Development Corp. ("Genesis" or the "Corporation") announces that it intends to purchase for cancellation up to 2,301,784 of its common shares by way of a normal course issuer bid through the facilities of the Toronto Stock Exchange. The common shares represent approximately 5% of the 46,035,690 issued and outstanding common shares of the Corporation as at September 17, 2008. The average daily trading volume on the Toronto Stock Exchange for the six months prior to the date hereto for the Corporation's common shares is 29,110 common shares, resulting in a daily purchase limit for the Corporation of 7,277 common shares.
The purchases may commence on September 23, 2008 and will terminate on September 22, 2009, or on such earlier date as the Corporation may complete its purchases pursuant to a notice of intention to be filed with The Toronto Stock Exchange or provide notice of termination. Any such purchases will be made by the Corporation at the prevailing market price at the time of such purchases in accordance with the requirements of the Toronto Stock Exchange.
The Corporation believes that the current trading price of its common shares does not reflect the value of such shares in relation to the Corporation's business prospects. Accordingly the Corporation believes that the commencement of this normal course issuer bid represents an opportunity to create value for shareholders, is in the best interests of the Corporation and its shareholders and is an appropriate use of the Corporation's funds.
To the knowledge of the Corporation, no director, senior officer or other insider of the Corporation intends at present to sell any common shares under this bid. However, sales by such persons through the facilities of the Toronto Stock Exchange or elsewhere may occur if the circumstances or decisions of any such person change. The benefits to any such person whose common shares are purchased would be the same as the benefits available to all other holders whose common shares are purchased.
The Corporation's previous normal course issuer bid was implemented on September 28, 2006 and ended on September 27, 2007. Genesis acquired a total of 200,000 of its common shares pursuant to its previous bid at an average cost of $5.75 per share.