TORONTO, Aug. 11,
2022 /CNW/ - Russel Metals Inc. (TSX: RUS)
announces that it has received approval from the Toronto Stock
Exchange (the "TSX") of its notice of intention to make a normal
course issuer bid (the "NCIB").
Under the NCIB, Russel Metals may purchase for cancellation, on
the open market at its discretion, during the period commencing on
August 16, 2022 and ending on the
earlier of August 15, 2023 and the
completion of purchases under the NCIB, up to 3,155,611 common
shares of Russel Metals ("Common Shares"), which represents 5% of
the issued and outstanding Common Shares. As of August 11, 2022, Russel Metals had 63,112,220
issued and outstanding Common Shares.
Daily purchases on the TSX under the NCIB will be limited to
63,354 Common Shares, which represents 25% of the average daily
trading volume of 253,416 on the TSX for six months ending
July 31, 2022, subject to any
purchases made pursuant to the block purchase exception. The actual
number of Common Shares which may be purchased under the NCIB and
the timing of any such purchases will be determined by Russel
Metals in its discretion, subject to applicable laws and the rules
of the TSX. Purchases under the NCIB are expected to be made
through the facilities of the TSX and alternative trading systems
in Canada at prevailing market
prices. The NCIB will be funded using Russel Metals' existing cash
resources or credit facilities, and any Common Shares repurchased
by Russel Metals under the NCIB will be cancelled.
Russel Metals believes that the NCIB will provide a flexible
tool as part of its capital allocation program, while generating
value for shareholders. Decisions regarding any future repurchases
will depend on certain factors, such as market conditions, share
price and other opportunities to invest capital for growth. Russel
Metals may elect to suspend or discontinue share repurchases at any
time, in accordance with applicable laws.
About Russel Metals
Russel Metals is one of the largest metals distribution
companies in North America, with a
growing focus on value-added processing. It carries on
business in three segments: metals service centers, energy products
and steel distributors. Its network of metals service centers
carries an extensive line of metal products in a wide range of
sizes, shapes and specifications, including carbon hot rolled and
cold finished steel, pipe and tubular products, stainless steel,
aluminum and other non-ferrous specialty metals. Its energy
products operations carry a specialized product line focused on the
needs of energy industry customers. Its steel distributors
operations act as master distributors selling steel in large
volumes to other steel service centers and large equipment
manufacturers mainly on an "as is" basis.
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Releases, you may do so by emailing info@russelmetals.com; or by
calling our Investor Relations Line: 905-816-5178.
Cautionary Statement on Forward
Looking Information
Certain statements contained in this press release constitute
forward-looking statements or information within the meaning of
applicable securities laws relating to, among other things, the
anticipated benefits of the financing. Forward-looking statements
are often, but not always, identified by the use of words such as
"expect", "may", "will", "could", "might", "should", "believe" and
similar expressions. Forward-looking statements are necessarily
based on estimates and assumptions that, while considered
reasonable by us, inherently involve known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking statements. In particular, such
forward-looking statements include, but are not limited to,
statements relating to Russel Metals' intention to commence the
NCIB and the timing, methods and quantity of any purchases of
Common Shares under the NCIB, the availability of cash for
repurchases of Common Shares under the NCIB, compliance with
applicable laws and regulations pertaining to the NCIB, Russel
Metals' perceptions of historical trends, current conditions and
expected future developments, as well as other considerations that
are believed to be appropriate in the circumstances.
While we believe that the expectations reflected in our
forward-looking statements are reasonable, no assurance can be
given that these expectations will prove to be correct, and our
forward-looking statements included in this press release should
not be unduly relied upon. These statements speak only as of the
date of this press release and, except as required by law, we do
not assume any obligation to update our forward-looking
statements.
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SOURCE Russel Metals Inc.