EMX Royalty Announces Commencement of Normal Course Issuer Bid
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Insights
Implementing a Normal Course Issuer Bid (NCIB) is a strategic financial maneuver often used by companies believing their stock is undervalued. By repurchasing up to 4.45% of its outstanding shares, EMX Royalty Corporation signals to the market a strong confidence in its intrinsic value. This action can be a catalyst for elevating the stock price, as it not only reduces the number of shares available, potentially increasing earnings per share (EPS), but also provides a support level for the stock price during the buyback period.
From a financial perspective, the decision to use available cash for share repurchases rather than for reinvestment or debt reduction suggests that EMX assesses the return on investment from the buyback will be more beneficial to shareholders. This move could be particularly attractive to existing shareholders, as it may lead to an appreciation in the value of their holdings. However, it is crucial to monitor the company's cash reserves post-buyback to ensure it maintains sufficient liquidity for operational needs and unexpected expenses.
The NCIB announcement by EMX Royalty Corporation is reflective of broader market trends where companies utilize share buybacks as a method to return value to shareholders. It's important to analyze the market conditions and sector performance to understand the potential impact of such a buyback. If the mining and royalty sector is facing headwinds, the buyback could provide temporary relief to EMX's stock price. Conversely, in a bullish commodity market, the NCIB might complement the sector's positive momentum, further propelling the stock.
Investors should also consider the historical performance of the company's stock post-NCIB announcements. A comparative analysis with similar companies that have undertaken NCIBs can provide insights into the potential effectiveness of this strategy for EMX. Additionally, the volume of shares traded during the buyback period can offer clues about investor sentiment and the likelihood of the buyback influencing the market price.
The legal framework surrounding the NCIB is critical to ensure compliance with securities regulations. EMX Royalty Corporation's adherence to the rules and policies of the TSXV, NYSE American and applicable Canadian and United States securities laws demonstrates a commitment to transparency and regulatory compliance. Investors should take comfort in the fact that the buyback will be conducted through regulated exchanges, which provides a level of oversight and ensures that the repurchases are made at market prices without artificially inflating the stock.
Furthermore, the appointment of National Bank Financial Inc. to conduct the buyback on behalf of EMX indicates a structured approach to the NCIB, with the potential for professional execution of trades. This could mitigate the risk of potential conflicts of interest and aligns with best practices in corporate governance.
Vancouver, British Columbia--(Newsfile Corp. - February 7, 2024) - EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) (the "Company" or "EMX") is pleased to announce that it has received approval from the TSX Venture Exchange ("TSXV") of its Notice of Intention to Make a Normal Course Issuer Bid (the "NCIB").
Under the NCIB, the Company may purchase for cancellation up to 5,000,000 common shares (the "Shares") (representing approximately
EMX believes that from time to time, the market price of its Shares may not reflect their underlying value and that the purchase of its Shares will enhance shareholder value and increase liquidity of the Shares. The Company intends to fund the purchases out of available cash.
All purchases made pursuant to the NCIB will be made through the facilities of the TSXV, NYSE American Stock Exchange ("NYSE American"), other designated exchanges and/or alternative Canadian trading systems or by such other means as may be permitted by applicable securities laws. The NCIB will be made in accordance with the applicable rules and policies of the TSXV, NYSE American and applicable Canadian and United States securities laws. The price that EMX will pay for Shares in open market transactions will be the market price at the time of purchase. Any Shares that are purchased under the NCIB will be cancelled. The actual number of Shares that may be purchased and the timing of such purchases will be determined by the Company. Decisions regarding purchases will be based on market conditions, share price, best use of available cash, and other factors. The Company is not obligated to purchase any particular number of Shares under the NCIB and the NCIB may be modified or suspended at the Company's discretion.
EMX has appointed National Bank Financial Inc. to make purchases under the NCIB on its own behalf.
About EMX. EMX is a precious, base and battery metals royalty company. EMX's investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company's common shares are listed on the TSXV and the NYSE American under the symbol "EMX", and also trade on the Frankfurt exchange under the symbol "6E9". Please see www.EMXroyalty.com for more information.
For further information contact:
David M. Cole
President and CEO
Phone: (303) 973-8585
Dave@EMXroyalty.com
Scott Close
Director of Investor Relations
Phone: (303) 973-8585
SClose@EMXroyalty.com
Isabel Belger
Investor Relations (Europe)
Phone: +49 178 4909039
IBelger@EMXroyalty.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility of the adequacy or accuracy of this release.
Forward-Looking Statements
This news release may contain "forward-looking statements" that reflect the Company's current expectations and projections about its future results. These forward-looking statements may include statements regarding EMX's proposed normal course issuer bid and the timing, number and price of Shares that may be purchased under the normal course issuer bid, or other statements that are not statements of fact. When used in this news release, words such as "estimate," "intend," "expect," "anticipate," "will", "believe", "potential" and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company's future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company's actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to the market price of the Shares being too high to ensure that purchases benefit the Company and its shareholders, and other factors.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company's MD&A for the quarter ended September 30, 2023 (the "MD&A"), and the most recently filed Annual Information Form ("AIF") for the year ended December 31, 2022, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR at www.sedarplus.ca and on the SEC's EDGAR website at www.sec.gov.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/197074
FAQ
What is the Notice of Intention to Make a Normal Course Issuer Bid (NCIB) approved by the TSX Venture Exchange?
How many common shares can EMX purchase for cancellation under the NCIB?
What is the purpose of the NCIB for EMX?
Who has EMX appointed to make purchases under the NCIB on its own behalf?
