Dexterra Announces Renewal of Normal Course Issuer Bid
Dexterra announces the renewal of its normal course issuer bid (NCIB) approved by the Toronto Stock Exchange, effective from May 23, 2024, to May 22, 2025. The NCIB allows Dexterra to repurchase up to 165,600 common shares, less than 1% of the total 64,147,229 shares outstanding as of May 16, 2024. Dexterra believes its shares are undervalued and considers the repurchase an attractive investment. Under the previous NCIB, Dexterra repurchased 1,134,400 shares at an average price of C$5.78 each, totaling C$6,556,832. The company also entered an automatic share purchase plan (ASPP) with a broker to facilitate repurchases during trading black-outs.
- Dexterra renews its NCIB, showing confidence in the company's future.
- The ability to repurchase up to 165,600 common shares under the NCIB.
- Shares are considered undervalued by Dexterra management.
- Under the previous NCIB, Dexterra repurchased shares at an average price of C$5.78.
- Total cash consideration for previous repurchases was C$6,556,832.
- Introduction of an ASPP to facilitate share repurchases during trading black-outs.
- Maximum repurchase under the new NCIB is less than 1% of total shares, indicating impact.
- The previous NCIB did not hit its maximum repurchase allowance.
- Potential for minimal liquidity improvement due to the small percentage of shares being repurchased.
Toronto, Ontario--(Newsfile Corp. - May 21, 2024) - Dexterra Group Inc. (TSX: DXT) ("Dexterra") is pleased to announce that the Toronto Stock Exchange ("TSX") has approved its notice of intention to renew its normal course issuer bid ("NCIB"). Pursuant to the terms of the NCIB, commencing on May 23, 2024 and expiring on May 22, 2025, Dexterra may purchase its own common shares for cancellation through the facilities of the TSX or alternative Canadian trading systems, in accordance with the applicable requirements, and as otherwise permitted under applicable securities laws. The maximum number of common shares which may be purchased by Dexterra during the NCIB will not exceed 165,600 common shares being less than
In addition to providing shareholders liquidity, Dexterra believes that the common shares have been trading in a price range which does not adequately reflect their value in relation to Dexterra's business and its future prospects. Dexterra further believes that the purchase of the common shares through the NCIB, at appropriate times, can constitute an attractive investment.
Under its prior NCIB that commenced on May 15, 2023 and terminated on May 14, 2024, Dexterra previously sought and received approval from the TSX to repurchase up to 1,300,000 common shares. During and pursuant to its previously authorized NCIB, Dexterra purchased an aggregate of 1,134,400 common shares through the facilities of the TSX and alternative Canadian trading systems at a weighted-average price of C
Dexterra also announces that it is entering into an automatic share purchase plan (the "ASPP") with a designated broker to allow for the purchase of its common shares under its NCIB at times when Dexterra normally would not be active in the market due to applicable regulatory restrictions or internal trading black-out periods. Before the commencement of any particular internal trading black-out period, Dexterra may, but is not required to, instruct its designated broker to make purchases of the common shares under the NCIB during the ensuing black-out period in accordance with the terms of the ASPP. Such purchases will be determined by the broker in its sole discretion based on parameters established by Dexterra prior to commencement of the applicable black-out period in accordance with the terms of the ASPP and applicable TSX rules. Outside of these black-out periods, common shares will be purchasable by Dexterra at its discretion under its NCIB.
The NCIB and ASPP is effective as of May 23, 2024 and will terminate on the earliest of the date on which: (a) the maximum annual purchase limit under the NCIB has been reached; (b) the NCIB expires; or (c) Dexterra terminates the ASPP in accordance with its terms. The ASPP constitutes an "automatic securities purchase plan" under applicable Canadian securities laws.
About Dexterra
Dexterra employs more than 8,500 people, delivering a range of support services for the creation, management, and operation of infrastructure across Canada.
Powered by people, Dexterra brings best-in-class regional expertise to every challenge and delivers innovative solutions, giving clients confidence in their day-to-day operations. Activities include a comprehensive range of integrated facilities management services, industry leading workforce accommodation solutions, innovative modular building capabilities, and other support services for diverse clients in the public and private sectors.
For further information contact:
Denise Achonu, CFO
Head office: Airway Centre, 5915 Airport Rd., 4th Floor Mississauga, Ontario L4V 1T1
Telephone: (905) 270-1964
You can also visit our website at dexterra.com.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/209880
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