Wednesday, March 1, 2017

Mongolia Growth Group initiates normal course bid

Company website:


Mongolia Growth Group Ltd. (YAK ‐ TSXV and MNGGF - USA) (“MGG”) or (“the Company”) announced today that TSX Venture Exchange (the “Exchange”) has accepted a Notice of Intention to renew its normal course issuer bid to purchase outstanding common shares of the Company on the open market in accordance with the policies of the TSXV.

Pursuant to the NCIB, (the “Bid”) the Company may acquire up to 2,850,000 common shares (representing up to approximately 8.3 % of the 34,524,099 common shares of the Company currently issued and outstanding, or approximately 9.9% of the 28,592,349 common shares constituting the Company’s current Public Float (as that term is defined in the policies of the Exchange)) from time to time during the next 12 months. In accordance with the Policies of the Exchange, the maximum number of common shares that may be purchased under the Bid in any 30-day period may not exceed 2% of the issued and outstanding common shares of the Company when aggregated with all other common shares purchased under the Bid in the preceding 30 days.


The Company is undertaking the Bid because, in the opinion of its board of directors, the market price of its common shares, from time to time, may not fully reflect the underlying value of its operations and future growth prospects. The Company believes that in such circumstances, the purchase of the common shares of the Company may represent an appropriate and desirable use of the Company’s funds and further enhance market stability.

The Company may, subject to market conditions, sell one or more of its investment properties to finance purchases under the Bid from time to time.

From February 23, 2016 to February 22, 2017, the Company purchased 1,008,500 of its shares at an average price of $0.35 under its most recently expired NCIB.

The company management feels that the net asset value of the company is greater than the current share price. Therefore they are going to buy back shares in the open market up to 2.8 million shares. It appears that after the deal with the IMF that the Mongolia economy may be bottoming.

The CEO of the company thinks the shares are undervalued because he has been buying them up also.

No comments:

Related Posts Plugin for WordPress, Blogger...