TSX Symbol: RME Rocky Mountain Dealerships Inc. ("Rocky") announced today that it has received acceptance from the Toronto Stock Exchange to renew its normal course issuer bid ("NCIB") to purchase existing common shares.
Under the NCIB program, Rocky proposes to repurchase up to a maximum of 938,419 common shares during the next 12 months, representing five percent of its issued and outstanding common shares as of September 30, 2011. Rocky currently has 18,768,399 common shares issued and outstanding. Subject to specified exceptions, the maximum daily purchases under the NCIB shall not exceed 7,930 common shares of Rocky. The NCIB will begin on October 24, 2011 and will end when Rocky has purchased the maximum allowable number of shares, unless it provides earlier notice of termination. If not previously terminated, the NCIB will end on October 23, 2012. All purchases pursuant to the NCIB will be made through the facilities of the Toronto Stock Exchange and all shares purchased under the NCIB will be cancelled.
During the period from October 1, 2010 to September 30, 2011 inclusively, Rocky purchased 12,000 of its outstanding common shares at a weighted average purchase price of $8.9977, excluding transaction costs, pursuant to its NCIB in place during that period.
Rocky is of the view that having the capability to repurchase common shares increases the investment alternatives that can be undertaken for the benefit of all shareholders.