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The Cash Store Financial Announces Pricing for its Substantial Issuer Bid
11/11/2008 12:00:00 AM
EDMONTON, Dec. 24 /CNW/ - The Cash Store Financial Services Inc. ("Cash Store Financial") (TSX: CSF) announced today the final results of its "modified Dutch-auction" type substantial issuer bid to purchase for cancellation up to $9 million of its common shares (the "Offer"), which expired at 5:00 p.m. (Toronto time) on December 23, 2008.
Based on final reports from Computershare Investor Services Inc., the depositary for the Offer, the auction process was over-subscribed and as a result Cash Store Financial confirmed that it has taken up and accepted for purchase and cancellation, at a price of $6.00 per share, a total of 1,500,000 common shares out of approximately 5,952,253 common shares validly tendered tothe Offer (proration factor of approximately 31.5%), for a total cost of $9,000,000 (excluding fees and expenses relating to the Offer) in accordance with the terms of the Offer. The number of common shares validly tendered to the Offer and the proration factor may be subject to minor adjustments should shareholders who delivered notices of guaranteed delivery fail to deliver certificates for these common shares within the required time period.
The 1,500,000 common shares represent approximately 8.1% of Cash Store Financial's shares outstanding as of December 23, 2008. After giving effect tothe purchase of the common shares, Cash Store Financial will have approximately 16,927,482 common shares outstanding.
Payment to the depositary for common shares validly deposited and taken up by Cash Store Financial was made in cash, without interest, on December 24, 2008. The shares not purchased, including shares invalidly deposited, will bereturned promptly to the tendering shareholders.
The full details of the Offer are described in the Issuer Bid Circular, the related letter of transmittal and all other offer documents filed by Cash Store Financial on SEDAR at www.sedar.com.
About The Cash Store Financial Services Inc. (formerly Rentcash Inc.)
Cash Store Financial is the only payday advance broker in Canada publicly traded on the TSX. Cash Store Financial operates more than 380 branches across Canada under two banners: The Cash Store and Instaloans.
The Cash Store and Instaloans act as brokers to facilitate payday advance services to income-earning consumers who may not be able to obtain them from traditional banks.Cash Store Financial also provides a private-label debit card, The Freedom Card, and other ancillary products.
Cash Store Financial employs more than 1,500 associates and is headquartered in Edmonton, Alberta.
This news release contains "forward-looking statements" within themeaning of applicable Canadian securities legislation, including but notlimited to, statements about the Company's objectives and strategies includingwith respect to the substantial issuer bid, financial results, expectationsand outlook, whether for the Company's businesses or the Canadian economy.Generally, forward-looking statements can be identified by the use offorward-looking terminology such as "plans", "expects" or "does not expect","is expected", "budget", "scheduled", "planned", "estimates", "forecasts","intends", "anticipates" or "does not anticipate", or "believes", orvariations of such words and phrases or state that certain actions, events orresults "may", "could", "would", "might" or "will be taken", "occur" or "beachieved". Forward-looking statements are subject to known and unknown risks,uncertainties and other factors that may cause the actual results, level ofactivity, closing of transactions, performance or achievements of the Companyto be materially different from those expressed or implied by suchforward-looking statements, including but not limited to risks related tofluctuations is our stock price and capital markets and additional fundingrequirements, fluctuating interest rates and general economic conditions,legislative and regulatory developments, the nature of the Company's customersand rates of default, competition and loss of a material relationship as wellas those factors discussed in the Company's annual information form datedAugust 27, 2008 filed on SEDAR (www.sedar.com). All material assumptions usedin making forward-looking statements are based on management's knowledge ofcurrent business conditions and expectations of future business conditions andtrends, including management's knowledge of the current market within whichthe Company operates and other factors affecting the Company's products andthe Canadian economy. Although the Company believes the assumptions used tomake such statements are reasonable at this time and has attempted to identifyin its continuous disclosure documents important factors that could causeactual results to differ materially from those contained in forward-lookingstatements, there may be other factors that cause results not to be asanticipated, estimated or intended. Certain material factors or assumptionsare applied by the Company in making forward-looking statements, includingwithout limitation, factors and assumptions regarding acceptance of itscurrent stock price, products in the marketplace, consumer purchasing trends,existing relationships as well as its operating cost structure and currentlegislation and orders regulating its business. There can be no assurance thatsuch statements will prove to be accurate, as actual results and future eventscould differ materially from those anticipated in such statements.Accordingly, readers should not place undue reliance on forward-lookingstatements. The Company does not undertake to update any forward-lookingstatements that are contained herein, except in accordance with applicablesecurities laws. Further information on the Company is available atwww.sedar.com.
For further information: Gordon J. Reykdal, Chairman and Chief Executive Officer, Cash Store Financial, (780) 408-5118 Or Michael Thompson, Senior Vice-President and Corporate Secretary (780) 408-5595 Or Nancy Bland, Chief Financial Officer, Cash Store Financial, (780) 732-5683