MONTRÉAL – Stingray Group Inc. (TSX: RAY) announced on June 18, 2026, a significant move in its capital management strategy, executing a private agreement to repurchase 1,000,000 of its Subordinate Voting and Variable Subordinate Voting Shares. The transaction, valued at $15.4 million, saw shares bought back from CDP Investissements inc., a subsidiary of La Caisse, at a price of $15.40 per share.
This repurchase price represents a notable 5.1% discount to the closing price of Stingray’s shares on the Toronto Stock Exchange (TSX) on the day of the announcement. The media and music company confirmed that the entire $15.4 million consideration would be paid using its existing cash on hand, underscoring its robust financial position.
Strategic Alignment for Stingray
Eric Boyko, President, Co-Founder, and CEO of Stingray, emphasized the strategic rationale behind the buyback. “This share repurchase aligns perfectly with our ongoing commitment to active capital management and maximizing value for our shareholders,” Boyko stated. He further highlighted the company’s financial strength as a key enabler for the transaction. “Our healthy balance sheet and strong financial position allow us to fund this transaction from cash on hand while maintaining our debt-reduction targets, preserving the flexibility to pursue strategic acquisitions and invest in our future growth.”
This move signals Stingray’s confidence in its current valuation and its ability to generate sufficient cash flow to return capital to shareholders without compromising its operational or growth objectives. By utilizing cash on hand, Stingray avoids incurring additional debt or diluting existing shareholders through new equity issuance, reinforcing its commitment to financial prudence and shareholder returns.
La Caisse’s Portfolio Rebalancing
The transaction also reflects a strategic decision by La Caisse, a long-standing investor in Stingray. Kim Thomassin, Executive Vice-President and Head of Québec at La Caisse, commented on their rationale. “La Caisse has supported Stingray’s growth and expansion since its initial public offering more than ten years ago. This transaction lets us monetize a portion of our stake while remaining a key partner in this Montréal-based company’s success and future innovations. The capital generated may be invested in Québec companies to accelerate their growth,” Thomassin explained.
Concurrently with the share repurchase, La Caisse is also undertaking a broader portfolio rebalancing. The investment firm will sell an additional 2,300,000 Subordinate Voting and Variable Subordinate Voting Shares of Stingray. This block trade, representing approximately 4.2% of Stingray’s issued and outstanding Subordinate Voting and Variable Subordinate Voting Shares, will be underwritten by National Bank Financial and Desjardins Capital Markets.
Despite these divestitures, La Caisse will maintain a significant ownership stake in Stingray, holding close to 10% of the outstanding Subordinate Voting and Variable Subordinate Voting Shares. This continued substantial holding underscores La Caisse’s enduring belief in Stingray’s long-term prospects while allowing for strategic reallocation of capital within its broader investment portfolio.
Regulatory and Operational Details
To facilitate the private agreement and the discounted repurchase, Stingray obtained an order from the Autorité des marchés financiers. This order provides an exemption from the issuer bid requirements under applicable securities legislation, allowing the transaction to proceed at a discount in accordance with the exemption terms.
The share repurchase will be executed outside of the facilities of the TSX. Importantly, this specific transaction will not be factored into the calculation of the maximum annual global limit imposed under Stingray’s current normal course issuer bid (NCIB). This distinction provides Stingray with additional flexibility in its ongoing capital management efforts, allowing it to pursue opportunistic repurchases outside the regular NCIB framework when strategic opportunities arise, such as the discounted sale by a major shareholder.
Following the completion of the repurchase, detailed information, including the exact number of shares bought back and the aggregate price paid, will be made publicly available on SEDAR+ at www.sedarplus.ca. Stingray has indicated that it will not issue any additional press release specifically announcing the completion of this share repurchase.
This dual transaction — Stingray’s discounted buyback and La Caisse’s broader divestiture — highlights a strategic alignment between a company focused on enhancing shareholder value through efficient capital deployment and a major institutional investor rebalancing its portfolio while maintaining a significant stake in a long-term holding. The use of cash on hand and the favorable discount secured by Stingray underscore a financially astute maneuver designed to benefit its remaining shareholders and support future growth initiatives.
