TORONTO, ONTARIO--(Marketwired - Nov. 20, 2015) - Enercare Inc. ("Enercare") (TSX:ECI), one of Canada's leading providers of energy services and solutions, today announced that it had purchased for cancellation 3,846,154 of its common shares (the "Shares") under its normal course issuer bid at a price of $15.61 per Share for an aggregate price of approximately $60 million. The Shares were purchased from Direct Energy Marketing Limited ("Direct Energy") by way of a block trade and will be cancelled. The Shares were originally issued to D irect Energy as partial consideration for the purchase by Enercare of Direct Energy's Ontario home and small commercial business in October 2014.
The purchase price for the Shares was funded from cash on hand and a drawdown under Enercare's revolving credit facility. Enercare estimates that the purchase of the Shares will add approximately $2.2 million to its cash flow in 2016 as a result of its costs of funds being lower than its dividend rate.
"We are pleased to be able to complete this block trade with Direct Energy as we continue to perceive a gap between the market price of our Shares and the value of our business and its future prospects," said John Macdonald, President and Chief Executive Officer of Enercare.
Any future purchases under the NCIB, and the timing thereof, will be determined in the discretion of Enercare based on, among other things, its assessment of the perceived value gap and its determination of an appropriate utilization of Enercare's resources.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking information within the meaning of applicable Canadian securities laws ("forward-looking statements"). Statements other than statements of historical fact contained in this news release may be forward-looking statements, including, without limitation, management's expectations, intentions and beliefs concerning anticipated future events, results, circumstances, economic performance or expectations with respect to Enercare, including Enercare's business operations, business strategy and financial condition. Forward-looking statements may include words such as "estimates", "will" and "expects", although not all forward-looking information contains these words. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matt ers discussed in Enercare's most recently filed Management's Discussion and Analysis and in its current Annual Information Form. These forward-looking statements are subject to change as a result of new information, future events or other circumstances in which case they will only be updated by Enercare where required by law. All forward-looking statements in this press release are made as of the date hereof and are qualified by these cautionary statements.
Enercare is headquartered in Toronto, Ontario and publicly traded on the Toronto Stock Exchange (TSX:ECI). As one of Canada's largest home and commercial services and energy solutions companies with approximately 1,000 employees, Enercare provides water heaters, furnaces, air conditioners and other HVAC rental products, plumbing services, protection plans and related services to more than 1.2 million customers. Enercare is also the largest non-utility sub-meter provider, with electricity, water, thermal and gas metering contracts for condominium and apartment suites in Ontario, Alberta and elsewhere in Canada, and through its Triacta division, a premier designer and manufacturer of advanced sub-meters and sub-metering solutions.
For more information on Enercare visit enercare.ca. Additional information regarding Enercare is available on SEDAR at www.sedar.com or through Enercare's investor relations website at www.enercareinc.com or www.enercare.ca.