VANCOUVER, BC, Dec. 2, 2024 /CNW/ - East Side Games Group Inc. (TSX: EAGR) (OTC: EAGRF) ("ESGG" or the "Company") announces the renewal of its normal course issuer bid (the "NCIB").
East Side Games Group Logo (CNW Group/East Side Games Group Inc.)
The Company's board of directors believes that the market price of the Company's common shares (the "Shares"), from time to time, may not reflect the inherent value of the Company, and purchases of Shares pursuant to the NCIB represent an appropriate and desirable use of the Company's funds. Any purchases made under the NCIB will be made by the Company subject to favorable market conditions at the prevailing market price at the time of acquisition through the facilities of the Toronto Stock Exchange (the "TSX") and other alternative Canadian trading systems.
The Company's board of directors has approved such renewal, and the TSX has accepted the Company's notice of intention to commence with a new NCIB for a one-year period. This enables the Company to purchase up to 4,076,819 of its Shares, representing approximately 5% of its outstanding Shares as of November 20, 2024, over the next 12 months commencing December 4, 2024, and ending December 3, 2025 in accordance with the applicable policies of the TSX and securities laws.
Under the NCIB, other than purchases made pursuant to block purchase exemptions, the Company may purchase up to 3,673 Shares on the TSX and other alternative Canadian trading systems during any trading day, which represents approximately 25% of the average daily trading volume of the Shares on the TSX for the past six calendar months, being 14,695 shares per day. The Company may cancel any Shares repurchased under the NCIB, or reserve them for awards under its equity compensation plan.
In conjunction with the NCIB, the Company has renewed its automatic share purchase plan (the "ASPP") with a designated broker to allow for the purchase of its Shares under the NCIB at times when the Company normally would not be active in the market due to applicable regulatory restrictions or internal trading blackout periods. The ASPP has been pre-cleared by the TSX and is effective December 4, 2024, the commencement date of the NCIB. The ASPP constitutes an "automatic securities purchase plan" under applicable Canadian securities laws. Shares purchased under the ASPP will be included in computing the number of Shares purchased under the NCIB. Outside of these internal trading blackout periods, purchases under the NCIB will be made based on management's discretion.
Although the Company intends to purchase Shares under its NCIB, there can be no assurances that any such purchases will be completed.
The Company previously purchased a total of 2,129,035 shares out of the 4,076,819 shares authorized under the previous NCIB, which commenced on November 16, 2023, and terminated on November 15, 2024, at a volume-weighted average price per share of $0.663. All shares were purchased on the open market through the facilities of the Toronto Stock Exchange. As of November 20, 2024, the Company had 81,536,394 common shares issued and outstanding.
ABOUT EAST SIDE GAMES GROUP
East Side Games Group is a leading free-to-play mobile game group, creating engaging games that produce enduring player loyalty. Our studio groups entrepreneurial culture is anchored in creativity, execution, and growth through licensing of our proprietary Game Kit software platform that enables professional game developers to greatly increase the efficiency and effectiveness of game creation in addition to organic growth through a diverse portfolio of original and licensed IP mobile games that include: The Office: Somehow We Manage, Star Trek: Lower Decks – The Badgey Directive, Bud Farm Idle Tycoon, Doctor Who: Lost in Time, RuPaul's Drag Race Superstar, AEW: Rise to The Top, Cheech and Chong Bud Farm, and Trailer Park Boys: Grea$y Money.
We are headquartered in Vancouver, Canada and our games are available worldwide on the App Store and Google Play. Additional information about the Company can be found under its legal name, East Side Games Group Inc., at www.sedar.com.
Forward-looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the NCIB and purchases thereunder and the effects of repurchases. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. In particular, purchases made under the NCIB are not guaranteed and may be suspended at the discretion of the Company. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including factors beyond the Company's control. These forward-looking statements are made as of the date of this news release.
