Methanex Increases its Existing Share Repurchase Program to 10% of Public Float
July 26 2017 - 5:02PM
Methanex Corporation (the “Company”) (TSX:MX) (NASDAQ:MEOH)
announced today that its Board of Directors has approved an
amendment to its existing Normal Course Issuer Bid originally
announced on March 6, 2017 (the “Bid”) which increases the number
of common shares (“Shares”) that may be purchased under the Bid
from 4,492,141 to 6,152,358, representing 10% of the public float
at the time of the announcement of the Bid, and the maximum number
of common shares that may be purchased under the Bid.
To date, the Company has repurchased 3,755,000
Shares under the Bid at a weighted average purchase price of
US$44.66 per share. Commencing August 1, 2017, the remaining shares
under the amended Bid may be purchased on the open market through
the facilities of the Toronto Stock Exchange (the “TSX”) up to and
including March 12, 2018. The Company has received TSX approval of
the amended Bid. No other terms of the Bid have been
amended.
John Floren, President and CEO of Methanex
commented, “Our announcement of an increase to the existing share
repurchase program builds on a long track record of returning
excess cash to shareholders. As we continue to achieve
excellent production and sales results, we have the capacity to
generate strong cash flows at a range of methanol prices. With a
solid liquidity position and strong balance sheet, we have the
financial strength and flexibility to meet all of our financial and
capital commitments, pursue our near-term growth opportunities in
Chile, and deliver on our commitment to return excess cash to
shareholders.”
Purchases will be made from time to time at the
then current market price of the Shares and all Shares purchased
will be cancelled. Subject to certain exceptions for block
purchases, daily repurchases under the program will not exceed
75,192 common shares, representing 25 percent of the Company's
average daily trading volume on the TSX for the six month period
ended on February 28, 2017. The Company has entered into an
automatic securities purchase plan with its broker in connection
with purchases to be made under this program.
Methanex is a Vancouver-based, publicly traded
company and is the world's largest producer and supplier of
methanol to major international markets. Methanex shares are listed
for trading on the Toronto Stock Exchange in Canada under the
trading symbol "MX" and on the NASDAQ Global Select Market in the
United States under the trading symbol "MEOH".
FORWARD-LOOKING INFORMATION
WARNING
This press release contains certain
forward-looking statements with respect to us and our industry.
These statements relate to future events or our future performance.
All statements other than statements of historical fact are forward
looking statements. Statements that include the words "expect", and
"continue" or other comparable terminology and similar statements
of a future or forward-looking nature identify forward-looking
statements. More particularly and without limitation, any
statements regarding the following are forward-looking
statements:
- Methanex’s expected future financial strength and cash
generation capability, and
- Methanex's ability to continue to return excess cash to
shareholders.
We believe that we have a reasonable basis for
making such forward-looking statements. The forward-looking
statements in this document are based on our experience, our
perception of trends, current conditions and expected future
developments as well as other factors. Certain material factors or
assumptions were applied in drawing the conclusions or making the
forecasts or projections that are included in these forward-looking
statements, including, without limitation, future expectations and
assumptions concerning the following:
- the supply of, demand for, and price of methanol, methanol
derivatives, natural gas, coal, oil and oil derivatives,
- operating rates of our facilities,
- operating costs including natural gas feedstock and logistics
costs, capital costs, tax rates, cash flows, foreign exchange rates
and interest rates, and
- global and regional economic activity (including industrial
production levels).
However, forward-looking statements, by their
nature, involve risks and uncertainties that could cause actual
results to differ materially from those contemplated by the
forward-looking statements. The risks and uncertainties primarily
include those attendant with producing and marketing methanol and
successfully carrying out major capital expenditure projects in
various jurisdictions, including without limitation:
- conditions in the methanol and other industries including
fluctuations in the supply, demand for and price of methanol and
its derivatives, including demand for methanol for energy
uses,
- the price of natural gas, coal, oil and oil derivatives,
- our ability to obtain natural gas feedstock on commercially
acceptable terms to underpin current operations and future growth
opportunities,
- the ability to successfully carry out corporate initiatives and
strategies,
- actions of competitors, suppliers and financial
institutions,
- world-wide economic conditions, and
- other risks described in our 2016 Annual Management's
Discussion and Analysis and our Second Quarter 2017 Management's
Discussion and Analysis.
Having in mind these and other factors,
investors and other readers are cautioned not to place undue
reliance on forward-looking statements. They are not a substitute
for the exercise of one's own due diligence and judgment. The
outcomes anticipated in forward-looking statements may not occur
and we do not undertake to update forward-looking statements except
as required by applicable securities laws.
For further information, contact:
Sandra Daycock
Director, Investor Relations
Tel: 604 661 2600
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