Exco Technologies Limited Announces Normal Course Issuer Bid

Rhea-AI Summary

Exco Technologies Limited (OTCQX: EXCOF) announced the approval of a normal course issuer bid (NCIB) by the Toronto Stock Exchange. The company plans to repurchase up to 1,785,000 common shares from February 20, 2023, to February 19, 2024, representing 10% of its public float of 17,850,596 shares. With an average daily trading volume of 20,018 shares, Exco can repurchase a maximum of 5,005 shares per trading day. The repurchase is aimed at enhancing shareholder value, as the Board believes the market may not reflect the company's true value. Exco has previously repurchased 185,033 shares at an average price of $8.62.

Positive

• Approval of normal course issuer bid to repurchase up to 1,785,000 shares.
• Repurchase plan indicates confidence in the company's market value.
• Previous share repurchase at a favorable average price enhances shareholder value.

Negative

• None.

TORONTO, Feb. 16, 2023 (GLOBE NEWSWIRE) -- Exco Technologies Limited (TSX: XTC, OTCQX: EXCOF) ("Exco" or the "Company") today announced that the Toronto Stock Exchange ("TSX") has approved the Company's normal course issuer bid ("NCIB"). Under the NCIB, Exco has the right to purchase for cancellation, from February 20, 2023 to February 19, 2024, a maximum of 1,785,000 common shares, representing 10% of the 17,850,596 shares forming Exco's public float as at February 7, 2023. As of February 7, 2023, Exco had 38,912,464 common shares issued and outstanding.

Any shares purchased by Exco under the NCIB will be effected through the facilities of TSX as well as on alternative Canadian trading systems, at prevailing market rates and any common shares purchased by the Company will be cancelled. The actual number of shares that may be purchased and the timing of any such purchases will be determined by Exco. Any purchases made by Exco pursuant to the NCIB will be made in accordance with the rules and policies of the TSX.

During the most recently-completed six months, the average daily trading volume for the common shares of Exco on the TSX was 20,018 shares. Consequently, under the policies of the TSX, Exco will have the right to repurchase under its NCIB, during any one trading day, a maximum of 5,005 shares, representing 25% of the average daily trading volume. In addition, Exco will be allowed to make, once per calendar week, a block purchase (as such term is defined in the TSX Company Manual) of shares not directly or indirectly owned by insiders of Exco, in accordance with the TSX policies. Exco will fund the purchases through available cash and/or bank facilities. Pursuant to a previous notice of intention to conduct a normal course issuer bid, under which Company sought and received approval from the TSX to purchase up to 1,955,000 common shares for the period of February 18, 2022 to February 17, 2023, the Company has purchased 185,033 common shares on the open market as of February 7, 2023 at a weighted average purchase price of $8.62 per common share.

Exco’s Board of Directors believes the underlying value of the Company may not be reflected in the market price of its common shares from time to time and that, at appropriate times, repurchasing its shares through the NCIB may represent a good use of Exco's financial resources, as such action can protect and enhance shareholder value when opportunities or volatility arise. Thus, the Board has determined that the NCIB is in the best interest of the Company and its shareholders.

Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries.  Through our 20 strategic locations in 9 countries, we employ approximately 5,000 people and service a diverse and broad customer base.

Source:	Exco Technologies Limited (TSX-XTC)
Contact:	Darren Kirk, President and Chief Executive Officer
Telephone:	(905) 477-3065 ext. 7233
Website:	https://www.excocorp.com

FAQ

What is Exco Technologies' recent announcement regarding the NCIB?

Exco Technologies announced the approval of a normal course issuer bid (NCIB) to repurchase up to 1,785,000 common shares.

What is the timeline for Exco's share repurchase program?

The share repurchase program will run from February 20, 2023, to February 19, 2024.

How many shares can Exco repurchase each trading day under the NCIB?

Exco can repurchase a maximum of 5,005 shares per trading day based on the average daily trading volume.

How many shares did Exco previously repurchase and at what price?

Exco previously repurchased 185,033 shares at a weighted average price of $8.62.

What percentage of Exco's public float does the NCIB represent?

The NCIB represents 10% of Exco's public float, which was 17,850,596 shares as of February 7, 2023.