Stella-Jones Announces Normal Course Issuer Bid
November 09 2022 - 7:00AM
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 November 14, 2022, and ending
November 13, 2023, purchase for cancellation, up to 5,000,000
Common Shares, representing approximately 9.6% of the public float
of its Common Shares. As at October 31, 2022, Stella-Jones had
59,525,467 Common Shares issued and outstanding, 51,819,214 Common
Shares comprising the public float. As approved by the TSX, the
Company was authorized to purchase for cancellation up to 5,000,000
Common Shares during the 12-month period commencing on November 12,
2021 and ending on November 11, 2022. During such period, the
Company purchased 5,000,000 Common Shares through the facilities of
the TSX at a weighted average price of approximately $38.26 per
Common Share, for a total consideration of approximately
$191,276,706.
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 October 31 2022 was 109,668 Common Shares and,
therefore, in accordance with the requirements of the TSX, the
daily purchase limit under the normal course issuer bid on the TSX
will be 27,417 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. Stella-Jones has entered into an automatic
share repurchase plan with its designated broker in connection with
the Normal Course Issuer Bid in order to permit the automatic
purchase of shares throughout the term of the normal course issuer
bid.
The Board of Directors of Stella-Jones believes
that the repurchase of Common Shares represents an attractive and
responsible investment of capital and is in the best interests of
Stella-Jones.
ABOUT STELLA-JONES Stella-Jones
Inc. (TSX: SJ) is North America’s leading producer of
pressure-treated wood products. It supplies all the continent’s
major electrical utilities and telecommunication companies with
wood utility poles and North America’s Class 1, short line and
commercial railroad operators with railway ties and timbers.
Stella-Jones also provides industrial products, which include wood
for railway bridges and crossings, marine and foundation pilings,
construction timbers and coal tar-based products. Additionally, the
Company manufactures and distributes premium treated residential
lumber and accessories to Canadian and American retailers for
outdoor applications, with a significant portion of the business
devoted to servicing the Canadian market through its national
manufacturing and distribution network. The Company’s common shares
are listed on the Toronto Stock Exchange.
CAUTION REGARDING FORWARD-LOOKING
INFORMATION Except 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 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 |
Martin Goulet, M.Sc., CFA |
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MBC Capital Markets Advisors |
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Senior Vice-President and |
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Chief Financial Officer |
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Stella-Jones |
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Tel.: (514) 934-8660 |
Tel.: (514) 731-0000 |
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stravaglini@stella-jones.com |
mgoulet@maisonbrison.com |
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