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MONTRÉAL, March 2, 2020 /CNW
Telbec/ - Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP)
today announced that its board of directors authorized the
repurchase of up to 15% of the company's common stock for aggregate
consideration of up to $100 million.
Repurchase transactions will be funded using the company's sources
of liquidity.
"Having recently exhausted our previous repurchase program, it
is appropriate to introduce a new program to be ready to act
opportunistically to return capital to shareholders when conditions
are right," said Yves Laflamme,
president and chief executive officer. "We believe that proper
capital allocation is a top priority and that it must be done in a
disciplined manner. Accordingly, we intend to strike a balance
between value-creating opportunities such as high-return projects
with opportunities to return excess capital to shareholders."
Under the new share repurchase program, the company is
authorized to repurchase from time to time shares of its
outstanding common stock on the open market or in privately
negotiated transactions in the United
States. The timing and amount of stock repurchases will
depend on a variety of factors, including the market conditions as
well as corporate and regulatory considerations. The share
repurchase program may be suspended, modified or discontinued at
any time, and the company has no obligation to repurchase any
amount of its common stock under the program. The repurchase
program has no set expiration date. The company intends to make all
repurchases in compliance with applicable regulatory guidelines and
to administer the plan in accordance with applicable laws,
including Rule 10b-18 of the
Securities Exchange Act of 1934, as amended.
Cautionary Statements Regarding Forward-looking
Information
Statements in this press release that are not reported financial
results or other historical information of Resolute Forest Products
Inc. and its subsidiaries (collectively, the "company," "we,"
"our," or "us") are "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995. They
include, for example, statements relating to the company's
intention to repurchase shares of its common stock from time to
time under its stock repurchase program and the source of funding
therefor. Forward-looking statements may be identified by the use
of forward-looking terminology such as the words "should," "would,"
"could," "will," "may," "expect," "believe," "anticipate,"
"attempt," "project," "intend" and other terms with similar meaning
indicating possible future events or potential impact on the
company's business or its shareholders.
The reader is cautioned not to place undue reliance on these
forward-looking statements, which are not guarantees of future
performance. These statements are based on management's current
assumptions, beliefs and expectations, all of which involve a
number of business risks and uncertainties that could cause actual
results to differ materially. Such risks and uncertainties include,
among other things, the market price of the company's stock
prevailing from time to time, the nature of other investment
opportunities presented to the company, the company's financial
performance and its cash flows from operations, general economic
conditions, which could adversely affect the company's results of
operations and cash flows. Additional information regarding factors
that may cause actual results to differ materially from these
forward-looking statements is available in the company's filings
with the SEC, including the risks and uncertainties identified in
Part I, Item 1A – Risk Factors of the company's Annual Report on
Form 10-K for the year ended December 31,
2018.
All forward-looking statements in this press release are
expressly qualified by the cautionary statements set out or
referred to above and in the company's other filings with the U.S.
Securities and Exchange Commission and the Canadian securities
regulatory authorities. The company disclaims any obligation to
publicly update or revise any forward-looking information, whether
as a result of new information, future events or otherwise, except
as required by law.
About Resolute Forest Products
Resolute Forest Products is a global leader in the forest
products industry with a diverse range of products, including
market pulp, tissue, wood products, newsprint and specialty papers,
which are marketed in close to 70 countries. The company owns or
operates some 40 facilities, as well as power generation assets, in
the United States and Canada. Resolute has third-party certified
100% of its managed woodlands to internationally recognized
sustainable forest management standards. The shares of Resolute
Forest Products trade under the stock symbol RFP on both the New
York Stock Exchange and the Toronto Stock Exchange.
Resolute has received regional, North American and global
recognition for its leadership in corporate social responsibility
and sustainable development, as well as for its business practices.
Visit www.resolutefp.com for more information.
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SOURCE Resolute Forest Products Inc.