Stella-Jones Announces Normal Course Issuer Bid
August 05 2020 - 07:05AM
Stella-Jones Inc. (TSX: SJ) (“Stella-Jones” or the “Company”)
announced today that the Toronto Stock Exchange (“TSX”) has
accepted its Notice of Intention to Make a Normal Course Issuer Bid
(the “Notice”). Pursuant to the Notice, Stella-Jones may, during
the 12-month period commencing August 10, 2020 and ending August 9,
2021, purchase for cancellation, up to 2,500,000 Common Shares,
representing approximately 3.7% of its outstanding Common Shares.
As at July 31, 2020, Stella-Jones had 67,488,235 Common Shares
issued and outstanding. Within the last twelve months, the Company
has purchased 1,690,283 Common Shares through the facilities of the
TSX at a weighted average price of $38.40 per Common Share, for a
total consideration of $64,899,455.
The Notice provides that purchases under the
Normal Course Issuer Bid will be effected on the open market
through the facilities of the TSX. The average daily trading volume
(the “ADTV”) of the Common Shares on the TSX for the six month
period ended July 31, 2020 was 204,696 Common Shares and,
therefore, in accordance with the requirements of the TSX, the
daily purchase limit under the NCIB on the TSX will be 51,174
Common Shares, representing 25% of the ADTV, subject to certain
prescribed exceptions. The price that Stella-Jones will pay for any
Common Shares acquired by Stella-Jones under the Normal Course
Issuer Bid will be the market price of the Common Shares at the
time of acquisition. Purchases will be made at management’s
discretion. Additionally, Stella-Jones has implemented an automatic
share purchase plan with its designated broker in connection with
the Normal Course Issuer Bid in order to allow, if deemed advisable
by Stella-Jones, for share purchases during self-imposed blackout
periods.
The Board of Directors of Stella-Jones believes
that the repurchase of Common Shares, which Stella-Jones may carry
out from time to time, represents an attractive and responsible
investment of funds on hand and is in the best interests of
Stella-Jones.
ABOUT STELLA-JONESStella-Jones
Inc. (TSX: SJ) is a leading producer and marketer of pressure
treated wood products. The Company supplies North America’s
electrical utilities and telecommunication companies with utility
poles and the continent’s railroad operators with railway ties and
timbers. Stella-Jones also manufactures and distributes residential
lumber and accessories to retailers for outdoor applications, as
well as industrial products for construction and marine
applications. The Company’s common shares are listed on the Toronto
Stock Exchange.
CAUTION REGARDING FORWARD-LOOKING
INFORMATIONExcept for historical information provided
herein, this press release may contain information and statements
of a forward-looking nature concerning the future performance of
the Company. These statements are based on suppositions and
uncertainties as well as on management's best possible evaluation
of future events. Such factors may include, without excluding other
considerations, general economic and business conditions (including
the impact of the global outbreak of the coronavirus pandemic),
evolution in customer demand for the Company's products and
services, product selling prices, availability and cost of raw
materials, changes in foreign currency rates, and the ability of
the Company to raise capital. As a result, readers are advised that
actual results may differ from expected results. Unless required to
do so under applicable securities legislation, the Company does not
assume any obligation to update or revise forward-looking
statements to reflect new information, future events or other
changes after the date hereof.
Source: |
Stella-Jones Inc. |
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Contacts: |
Silvana Travaglini, CPA,
CA |
Pierre Boucher, CPA,
CMA |
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Senior Vice-President and Chief
Financial Officer Stella-Jones |
Jennifer McCaughey,
CFA MaisonBrison CommunicationsTel.:
(514) 731-0000 |
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Tel.: (514) 940-8660 |
pierre@maisonbrison.com |
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stravaglini@stella-jones.com |
jennifer@maisonbrison.com |
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