Intrawest Corporation today announced its intention to effect a normal course issuer bid through the facilities of The Toronto Stock Exchange (the “TSE”) for up to 370,000 Non-Resort Preferred Shares (“NRP Shares”), or no greater than 10% of the “public float” (as defined in the General By-law of the TSE) of its NRP Shares. A normal course bid for up to 465,000 of the NRP Shares expired on January 9, 2002. Under such bid, Intrawest purchased 341,600 NRP Shares at an average price of $1.58 per share.
There are currently 5,172,336 NRP Shares issued and outstanding, of which 3,786,114 constitute the “public float” as of today`s date. Intrawest has today filed with the TSE, and the TSE has accepted, a Notice of Intention to make a Normal Course Issuer Bid in accordance with the rules of the TSE and will be in a position to commence purchases of the NRP Shares on February 22, 2002. The bid will terminate on the earlier of February 21, 2003, being the expiry of 12 months from the commencement of the bid, and the date upon which Intrawest has acquired the maximum number of NRP Shares permitted under the bid. Purchases will be made from time to time at the then current market price of the NRP Shares as traded on the TSE and NRP Shares purchased will be cancelled.
Purchases of NRP Shares under the bid will be subject to the provisions of the rights and restrictions of the NRP Shares which provide, among other things, that the Company may purchase NRP Shares only to the extent of “Available Cumulative NRP Net Cash Flow” (as defined in the share rights, generally speaking, being the net cash flow from non-resort related business operations of the Company) on the date of purchase and may purchase such shares provided that the aggregate purchase price of all NRP Shares purchased during any fiscal quarter of the Company does not exceed $1,000,000 and any such purchase shall be made at a price per share not exceeding $2.38.
Intrawest does not believe that current market prices of Intrawest`s NRP Shares reflect the underlying value of the non-resort assets of the Company and accordingly believes that share purchases at current prices would provide value and should increase liquidity to shareholders.
Intrawest is the leading developer and operator of mountain resorts across North America. The company owns ten mountain resorts, including Whistler Blackcomb, rated North America`s #1 resort. Intrawest also owns Sandestin, a golf and beach resort in Florida, and has a premier timeshare business. The company has a significant investment in Compagnie des Alpes, the largest ski company in the world in terms of skier visits and a 45% interest in Alpine Helicopters Ltd., owner of the largest heli-skiing operation in the world.