MONTREAL, Nov. 07, 2023 (GLOBE NEWSWIRE) — 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, 2023, and ending November 13, 2024, purchase for cancellation, up to 2,500,000 Common Shares, representing approximately 5% of the public float of its Common Shares. As at October 31, 2023, Stella-Jones had 57,153,679 Common Shares issued and outstanding, 49,446,375 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 14, 2022 and ending on November 13, 2023. During the period commencing November 14, 2022 and ending October 31, 2023, the Company purchased 2,426,452 Common Shares through the facilities of the TSX at a weighted average price of approximately $57.62 per Common Share, for a total consideration of approximately $139,802,149.
The Notice provides that purchases under the Normal Course Issuer Bid (“NCIB”) 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, 2023 was 116,080 Common Shares and, therefore, in accordance with the requirements of the TSX, the daily purchase limit under the NCIB on the TSX will be 29,020 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 NCIB 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 NCIB 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 represents an attractive and responsible investment of capital and is in the best interests of Stella-Jones.
Stella-Jones Inc. (TSX : SJ) is North America’s leading producer of pressure-treated wood products. It supplies 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. For more information, visit: www.stella-jones.com.
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 items include, among others: general political, economic and business conditions, evolution in customer demand for the Company’s products and services, product selling prices, availability and cost of raw materials, climate change, failure to recruit and retain qualified workforce, information security breaches or other cyber-security threats, changes in foreign currency rates, the ability of the Company to raise capital and factors and assumptions referenced herein and in the Company’s continuous disclosure filings. 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 Globe Newswire