Methanex Announces A 5% Share Repurchase Program
March 11 2019 - 8:30AM
Methanex Corporation (the “Company” or “Methanex”) (TSX:MX)
(NASDAQ:MEOH) announced today that its Board of Directors has
approved a Normal Course Issuer Bid (“NCIB”) whereby the Company
will purchase for cancellation up to 3,863,298 common shares
("Shares"), representing approximately 5% of the 77,265,973 Shares
issued and outstanding as of March 8, 2019. Purchases under the
NCIB will commence on March 18, 2019 and end no later than March
17, 2020. Purchases will be made from time to time at the then
current market price of the Shares and all Shares purchased under
the NCIB will be cancelled.
John Floren, President and CEO of Methanex
commented, “Our announcement of a new share repurchase program
builds on a long track record of returning excess cash to
shareholders. The improvements we have made in our business enable
us to generate strong earnings and cash flow at a wide 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 commitments, pursue our growth opportunities and
deliver on our commitment to return excess cash to
shareholders.”
Purchases pursuant to the NCIB will be made on
the open market through the facilities of the NASDAQ Global Select
Market (“NASDAQ”) and alternative trading systems in the United
States pursuant to Rule 10b-18 under the U.S. Securities Exchange
Act of 1934. Subject to certain exceptions for block purchases,
daily repurchases under the program through the NASDAQ and
alternative trading systems in the United States will not exceed
25% of the Company’s average daily trading volume for the four week
period preceding the date of purchase. The Company has entered into
an automatic securities purchase plan with its broker in connection
with purchases to be made under the 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". Methanex can
be visited online at www.methanex.com.
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 2017
Annual Management's Discussion and Analysis and our Fourth Quarter
2018 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:
Kim CampbellManager, Investor RelationsMethanex
Corporation604 661-2600 or Toll Free: 1 800 661
8851www.methanex.com
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