Kits Eyecare (KITS.TO) said Monday the Toronto Stock Exchange has accepted its notice of intention to make a normal course issuer bid to purchase a portion of its common shares.
The NCIB will allow it to repurchase up to a maximum of around 1.7 million common shares, representing near 5% of its issued and outstanding common shares, the company added.
The period during which Kits is authorized to make purchases under the NCIB starts on June 3, 2026 and ends on June 2, 2027 or such earlier date on which the maximum number of common shares are purchased under the NCIB or the NCIB is terminated at the company's election, Monday's statement noted.
"KITS believes that share purchases pursuant to the NCIB will contribute to the facilitation of an orderly market and be in the best interests of the company and its shareholders. The NCIB provides the company with a capital allocation alternative with a view to long-term shareholder value. KITS' board of directors and management believe that, from time to time, the market price of the common shares does not reflect their underlying value and purchases of common shares for cancellation under the NCIB may provide an opportunity to enhance shareholder value."
KITS was up $0.55 or 4.3% at $13.22 in Canada last Friday.