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TORONTO, Dec. 16, 2022 /CNW/ – Standard Mercantile Acquisition Corp. (TSX: SMA)  (the “Company“) announced today that it has received approval from the Toronto Stock Exchange (“TSX“) to commence a normal course issuer bid (“NCIB“), which will enable it to purchase up to 451,933 of its 7,318,067 total issued and outstanding Class A shares (“Shares“), representing approximately 10% of its public float of 4,519,334 Shares as at the date hereof.

The Company intends to commence the NCIB on December 20, 2022. The NCIB will expire on December 19, 2023 or such earlier date as the Company completes its purchases pursuant to the NCIB. All purchases under the NCIB will be made on the open market through the facilities of the TSX or alternative trading systems in Canada at market prices prevailing at the time of purchase. In accordance with rules and policies of the TSX, any purchases under the NCIB will be limited to a maximum of 1,000 Shares per trading day. The average daily trading volume of the Shares on the TSX for the six months ended November 30, 2022 was 1,599 Shares. Any Shares purchased by the Company will be cancelled.

On June 16, 2016, the shareholders of the Company (the “Shareholders“) approved the orderly wind-up of the Company (the “Orderly Wind-Up“), as amended by Shareholders at the Company’s May 6, 2021 at the Annual and Special Meeting of Shareholders. The primary purpose of the NCIB is to distribute net proceeds under the amended Orderly Wind-Up to Shareholders.

In connection with the NCIB, the Company intends to enter into an automatic purchase plan with its broker, Haywood Securities Inc., on December 20, 2022 to allow for the purchase of Shares at times when the Company ordinarily would not be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise, in accordance with applicable Canadian securities laws.

The Company holds a portfolio of mortgages in Canada. At the Company’s 2021 annual and special meeting of shareholders, the Company sought and received Shareholder approval to change its name to “Standard Mercantile Acquisition Corp.” and broaden the parameters of the Orderly Wind-Up. The Company remains focused on monetizing its remaining mortgage assets pursuant to the Orderly Wind-Up through potential future distributions of cash as and when available, and as determined to be in the best interests of the Company and Shareholders, or otherwise and is considering options to enable Shareholders to participate in the potential future value of the Company through transactions that could capitalize on the Company’s public listing. The Board has experience in sourcing, evaluating and executing transactions of this nature. There can be no assurances as to the timing or quantum of any future cash distributions or other monetization transactions.

SOURCE Standard Mercantile Acquisition Corp.