MONTRÉAL, Oct. 25, 2021 /CNW Telbec/ - LOGISTEC CORPORATION ("LOGISTEC") (TSX: LGT.A) (TSX: LGT.B) announced today that it is renewing its normal course issuer bid ("NCIB"). LOGISTEC believes that the repurchase of its shares may constitute an appropriate and desirable use of its available cash. Therefore, LOGISTEC believes that the offer is in the best interest of LOGISTEC and its shareholders.
The Toronto Stock Exchange (the "Exchange") has accepted a notice filed by LOGISTEC of its intention to make a NCIB. According to the notice, LOGISTEC intends to repurchase, for cancellation purposes, in accordance with the requirements of the Exchange i) up to 368,851 Class A Common Shares ("Class A Shares"), representing 5% of the outstanding Class A Shares and ii) up to 284,301 Class B Subordinate Voting Shares ("Class B Shares"), representing 5% of the outstanding Class B Shares.
The average daily trading volume (the "ADTV") of LOGISTEC's Class A Shares and Class B Shares over the last six completed calendar months was 14 and 2,355, respectively. Accordingly, under the Exchange Rules, LOGISTEC is entitled on any trading day to repurchase up to 1,000 Class A Shares and 1,000 Class B Shares. Once a week, in excess of the daily 1,000 purchase limit, LOGISTEC may also repurchase a block of shares of any category not owned by an insider (i) having a purchase price of $200,000 or more, (ii) of at least 5,000 shares having a purchase price of at least $50,000, or (iii) of at least 20 board lots of shares which total 150% or more of the ADTV in accordance with Exchange rules. LOGISTEC has retained BMO Nesbitt Burns Inc. as broker to manage the program.
LOGISTEC has repurchased some of its shares within the past twelve (12) months pursuant to a NCIB which began on October 28, 2020 and will terminate no later than October 27, 2021. The purchases were executed through the facilities of the Exchange as well as alternative Canadian trading systems. During this period, a total of 600 Class A Shares and 15,900 Class B Shares were repurchased at a weighted average price of $38.41 and $37.39, respectively. The maximum number of securities approved for purchase under this NCIB was 368,881 Class A Shares and 277,113 Class B Shares.
The new NCIB will begin on October 28, 2021 and will terminate no later than October 27, 2022. The purchases will be made through the facilities of the Exchange or alternative Canadian trading systems and may be made outside of the facilities of the Exchange pursuant to exemptions available under applicable securities legislation or exemption orders issued by securities regulatory authorities. LOGISTEC has implemented an automatic share purchase plan with its broker, which will allow the latter to purchase shares for LOGISTEC during blackout periods. The purchase of and payment for the shares will be made by LOGISTEC in accordance with the requirements of the Exchange and the price LOGISTEC will pay for any shares will be the market price of such shares at the time of acquisition, except for purchases effected outside the facilities of the Exchange pursuant to exemptions available under applicable securities legislation or exemption orders issued by securities regulatory authorities which may be at a discount to the prevailing market price. As of the close of business on October 15, 2021, there were 7,377,022 Class A Shares and 5,686,036 Class B Shares issued and outstanding.
LOGISTEC Corporation is based in Montréal (Québec) and provides specialized services to the marine community and industrial companies. LOGISTEC offers bulk, break-bulk and container cargo handling in some 54 ports and 80 terminals located in North America. In addition, LOGISTEC offers marine transportation services geared primarily to the Arctic coastal trade, as well as marine agency services to foreign shipowners and operators serving the Canadian market.
LOGISTEC also operates in the environmental sector where it provides services to industrial, municipal and governmental customers for the renewal of underground water mains, site remediation, dredging and dewatering, soils and materials management, risk assessment, and manufacturing of woven hoses.
A public company since 1969, LOGISTEC's shares are listed on the Toronto Stock Exchange under the ticker symbols LGT.A and LGT.B. For more information, please visit www.logistec.com.
SOURCE Logistec Corporation
View original content: http://www.newswire.ca/en/releases/archive/October2021/25/c1571.html