CAMBRIDGE, ON, Dec. 19, 2019 /CNW/ - ATS Automation Tooling
Systems Inc. (TSX: ATA) ("ATS" or the "Company") today announced
that the Toronto Stock Exchange ("TSX") has accepted a notice filed
by it of its intention to make a normal course issuer bid ("NCIB").
Under the NCIB, ATS will have the ability to purchase for
cancellation up to a maximum of 5,134,930 common shares,
representing approximately 10% of the public float of 51,349,307
common shares of the Company. As at December
16, 2019 there were 92,196,223 common shares of the
Company issued and outstanding.
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Purchases under the NCIB will be made through the facilities of
the TSX and/or alternative Canadian trading systems in accordance
with applicable regulatory requirements, during the twelve-month
period commencing on December 23,
2019 and ending on or before December
22, 2020. The average daily trading volume of the
common shares on the TSX for the six calendar months ending
November 30, 2019 is 172,187 common
shares. On any trading day ATS will not purchase more than 25% of
such average daily trading volume, representing 43,046 common
shares, except where such purchases are made in accordance with
available block purchase exemptions. The common shares purchased
under this NCIB will be cancelled.
Some purchases under the NCIB may be made pursuant to an
automatic purchase plan that has been entered into between ATS and
its broker. This plan will enable the purchase of ATS common
shares when ATS would not ordinarily be active in the market due to
internal trading blackout periods, insider trading rules, or
otherwise.
ATS believes that there are times when the market price of ATS
common shares may not reflect their underlying value and that the
purchase of shares by ATS will both provide liquidity to existing
shareholders and benefit remaining shareholders. The NCIB is viewed
by ATS management as one component of an overall capital structure
strategy and complimentary to its acquisition growth plans.
The NCIB follows the Company's normal course issuer bid for the
12 months ended December 4, 2019 (the
"2019 NCIB"). Under the 2019 NCIB, as amended, the Company had
obtained approval to purchase up to 6,366,405 common shares. The
Company's 2019 NCIB began on December 5,
2018 and ended on December 4,
2019. Within the past 12 months, under the 2019 NCIB the
Company repurchased through the facilities of the TSX, and
cancelled, 2,509,738 common shares at a weighted average purchase
price of Cdn $15.66 per common
share.
About ATS
ATS is an industry-leading automation
solutions provider to many of the world's most successful
companies. ATS uses its extensive knowledge base and global
capabilities in custom automation, repeat automation, automation
products and value-added services, including pre-automation and
after-sales services, to address the sophisticated manufacturing
automation systems and service needs of multinational customers in
markets such as life sciences, chemicals, consumer products,
electronics, food, beverage, transportation, energy, and oil and
gas. Founded in 1978, ATS employs approximately 4,400 people at 23
manufacturing facilities and over 50 offices in North America, Europe, Southeast
Asia and China. The
Company's shares are traded on the Toronto Stock Exchange under the
symbol ATA. Visit the Company's website at
www.atsautomation.com.
SOURCE ATS Automation Tooling Systems Inc.