Great Canadian Announces Is Buying Back 10% of Its Shares
These buybacks indicate a corporation is financially healthy, and that’s why the latest announcement made by Canada’s leading entertainment provider the Great Canadian Gaming Corporation (GCGC) is important.
The gaming giant headquartered in Coquitlam, British Columbia has announced its plans to buy back a minimum of 10% of its common shares. No doubt this move will increase the share’s overall value.
A Really Important Move
We know the company has obtained the necessary permissions from the Toronto Stock Exchange, while the payment for the shares will be conducted under the rules set by the world’s 9th largest exchange.
It should be noted that no transactions will be made other than in the open market, for as long the Issuer Bid period stays in effect. Only the market price will be regarded as true while making the acquisition, while all shares bought back by the GCGC will be deemed as cancelled.
The company made another announcement, confirming the Issuer Bid period would begin on July 3, 2019, and remain in force until July 2, 2020. However, the GCGC added it has the option of terminating the Issue Bid period whenever it chooses to.
The news about the buyback of the shares arrived shortly after the company, which owns a significant portion of the Canadian gaming market completed the sale of its interests in 3 casino brands operating in the United States. The move has been praised by investors, as it represents a sign the market in Canada is in good health.
Profit Is the Ultimate Goal
At this moment, the GCGC primarily focused on further developing its business operations in Ontario. This is obvious from the company’s decision to once again focus on the management of the Casino Ajax. But that’s not all, as the gaming, entertainment and hospitality company plans to overhaul its Durham Live entertainment brand based in Pickering.
Many believe that the company’s ultimate goal behind the buyback of its shares is an attempt to reposition the internal rations within the fir itself. Such a move would be extremely effective in the process of freeing up of value – value that would be later available as capital.
By the looks of it, were’ looking at major business expansion, although no details are available at this moment. However, these plans have boosted investor confidence. One thing is sure, though: the largest Canadian provider of casino entertainment knows how to make money.
Established in 1982, Great Canadian today operates a total of 28 gaming properties in Canada and the State of Washington, including casinos, horse race tracks with slot machines, and smaller-scale gaming centres. The renowned gaming and entertainment company also runs hotels, restaurants, and facilities associated with its properties. As of 2018, Great Canadian had 9,400 employees.
Great Canadian ended the first quarter of this year with a rise in revenue of 35%.