(December 16 – 09:25 ET) – Financial Concept Group shareholders are getting their bank accounts topped up. Winnipeg’s Assante Corp. is paying off its price protection promises in cash.
When Assante bought FCG, the deal included a provision for Assante to top up shareholders if the firm went public and its stock price slipped below the internal valuation of $15. Both happened. Assante had the option of paying in cash or stock.
“Consistent with the previously announced normal course issuer bid, Assante continues to believe that the market has significantly undervalued the company, and that one of the best ways to utilize its capital and maximize shareholder value, is to repurchase its shares and not issue additional shares at this point in time,” says Assante.
The firm didn’t specify how much cash was paid, but Assante’s IPO prospectus showed about 2.24 million shares carried the protection.
-IE Staff