Thunderbird Entertainment Group Inc. (TSXV:TBRD, OTCQX:THBRF), the Vancouver-based global award-winning company behind some of the most recognizable names in scripted, unscripted, and animated content, has announced the launch of a share buyback initiative. The move, known as a normal course issuer bid (NCIB), kicked off on December 9, 2024, and is set to run through December 8, 2025. The company’s leadership believes this is a smart way to use available cash to potentially benefit shareholders.
At its core, Thunderbird’s NCIB is a way for the company to buy back its own shares on the open market. The goal? To enhance shareholder value and improve liquidity for its stock. The company has stated that it feels the current market price may not fully reflect the underlying value of its business. By purchasing up to 2% of its issued and outstanding shares, funded entirely from available cash, Thunderbird is signaling confidence in its long-term prospects.
All buybacks will be executed through the TSX Venture Exchange, in strict accordance with its rules and Canadian securities laws. The price Thunderbird pays for each share will simply be the going market rate at the time of purchase. Any shares acquired will be cancelled, reducing the total number outstanding. This, in turn, can increase the value of the remaining shares and make the company’s stock more attractive to investors.
The specifics, such as the number of shares to be bought and the timing of purchases, will be determined by Thunderbird’s management. Their decisions will be guided by market conditions, share price, and the best use of available funds. The company has appointed Cormark Securities Inc. to handle the purchases on its behalf. Once the current program is complete, Thunderbird will evaluate whether to continue buying back shares under the NCIB.
Thunderbird is not just another content company. With headquarters in Vancouver and additional offices in Los Angeles and Ottawa, the business operates on a global stage. Its portfolio spans scripted, unscripted, and animated content, produced for leading digital platforms and broadcasters across Canada and internationally.
Thunderbird Entertainment operates a dynamic creative engine organized into several pivotal divisions, each specializing in distinct areas of content production. Thunderbird Kids and Family, managed under Atomic Cartoons, has achieved notable success with engaging series such as Mermicorno: Starfall and Molly of Denali. Another arm, Thunderbird Unscripted, is led by Great Pacific Media and produces widely watched reality and documentary series including Highway Thru Hell and Boot Camp. Additionally, the Thunderbird Scripted division is recognized for developing acclaimed scripted television, such as the beloved Kim’s Convenience and the compelling Sidelined: The QB and Me.
Beyond production, Thunderbird also manages global media and consumer product rights through its Thunderbird Distribution and Thunderbird Brands arms, serving both its own content and select third-party properties.
For investors, Thunderbird’s buyback program is a vote of confidence from the company itself. By reducing the number of shares in circulation, the value of each remaining share can increase, provided the company continues to perform well. This approach is often seen as a way for management to signal that they believe the stock is undervalued.
It’s worth noting that Thunderbird is funding these purchases entirely from available cash, not by taking on new debt. This is a prudent move, especially in today’s economic climate, where interest rates are higher and borrowing costs can be steep.
As the NCIB progresses, Thunderbird’s management will keep a close eye on market conditions and the performance of its stock. The company’s ability to adapt its buyback strategy based on these factors will be key to maximizing the program’s benefits for shareholders.
