North American Construction Group Ltd. Announces Entering into Automatic Share Purchase Plan

Rhea-AI Summary

North American Construction Group (NOA) has announced entering into an automatic share purchase plan (ASPP) with its designated broker, connected to its previously announced normal course issuer bid (NCIB). The ASPP allows the broker to purchase up to 2,087,577 common shares for cancellation until November 3, 2025.

The purchases will be executed through the TSX, NYSE, and alternative trading systems in Canada and the United States. The ASPP becomes effective January 9, 2025, and will terminate when either the NCIB expires, the maximum shares are purchased, or the Company terminates the plan. The NCIB, which began on November 4, 2024, allows purchases based on management's discretion outside of the ASPP, complying with TSX rules and securities laws.

Positive

• Implementation of share buyback program for up to 2,087,577 shares, potentially increasing shareholder value
• Structured approach to share repurchases through ASPP, ensuring continuous execution even during blackout periods

Negative

• None.

Insights

Financial Analyst

The implementation of an Automatic Share Purchase Plan (ASPP) by North American Construction Group represents a structured approach to their <money>$2.087 million</money> share buyback program. The ASPP allows for continuous share repurchases even during blackout periods, providing consistent market support for the stock.

This mechanized buyback approach typically helps reduce share price volatility and signals management's confidence in the company's valuation. With a market cap of <money>$591.2 million</money>, the authorized repurchase of up to 2,087,577 shares represents approximately <percent>3.5%</percent> of the float - a meaningful but conservative amount that balances capital return with operational flexibility.

The program's structure, running until November 2025, provides a steady price support mechanism while maintaining compliance with both TSX and NYSE requirements. For retail investors, this creates a predictable demand floor and potentially reduces downside risk, though the actual impact depends on execution timing and market conditions.

Market Research Analyst

The ASPP implementation comes at an interesting time in the construction sector cycle. By delegating purchase decisions to a broker with pre-set parameters, NACG is positioning itself to opportunistically acquire shares while maintaining market compliance. The program's flexibility to operate across multiple trading venues (TSX, NYSE and alternative systems) maximizes execution efficiency and price discovery.

The termination conditions built into the plan - including reaching the maximum share count or company-initiated termination - provide important safeguards while maintaining operational flexibility. This structured approach to capital return demonstrates sophisticated treasury management and could enhance the company's appeal to institutional investors who value consistent capital return programs.

ACHESON, Alberta, Jan. 07, 2025 (GLOBE NEWSWIRE) -- North American Construction Group Ltd. (“NACG” or “the Company”) (TSX:NOA/NYSE:NOA) today announced that, in connection with the Company’s previously announced normal course issuer bid (the “NCIB”) to purchase, for cancellation, up to 2,087,577 common shares in the capital of the Company (“Common Shares”), it has entered into an automatic share purchase plan (“ASPP”) with its designated broker.

Pursuant to the ASPP, the designated broker may purchase up to 2,087,577 Common Shares until the expiry of the NCIB on November 3, 2025. Such purchases will be determined by the broker at its sole discretion, based on the purchasing parameters set out by the Company in accordance with the rules of the Toronto Stock Exchange (“TSX”), applicable securities laws and the terms of the ASPP. Purchases of Common Shares under the ASPP may be made through the facilities of the TSX, the New York Stock Exchange (“NYSE”) and alternative trading systems in Canada and the United States by means of open market transactions or by such other means as may be permitted under applicable securities laws. The ASPP has been pre-cleared by the TSX and will be effective as of January 9, 2025.

The ASPP will terminate on the earliest of the date on which: (i) the NCIB expires; (ii) the maximum number of Common Shares have been purchased under the NCIB; and (iii) the Company terminates the ASPP in accordance with its terms. Concurrent with the establishment of the ASPP, the Company has confirmed to the broker that it was then not aware of any material undisclosed or non-public information with respect to the Company or any securities of the Company. During the term of the ASPP, the Company will not communicate any material undisclosed or non-public information to the trading staff of the broker; accordingly, the broker may make purchases regardless of whether a trading blackout period is in effect or whether there is material undisclosed or non-public information about the Company at the time that purchases are made under the ASPP. If the ASPP is materially varied, suspended or terminated, the Company will issue a news release advising of such variation, suspension or termination, as applicable.

Outside of the ASPP, Common Shares may continue to be purchased under the NCIB based on management’s discretion, in compliance with the rules of the TSX and applicable securities laws. The NCIB commenced on November 4, 2024, and expires on November 3, 2025. All purchases made under the ASPP will be included in the number of Common Shares available for purchase under the NCIB.

About the Company

NACG is one of Canada and Australia’s largest providers of heavy construction and mining services. For more than 70 years, NACG has provided services to the mining, resource, and infrastructure construction markets. For more information about North American Construction Group Ltd., visit www.nacg.ca.

For further information contact:
Jason Veenstra, CPA, CA
Chief Financial Officer
North American Construction Group Ltd.
(780) 948-2009
jveenstra@nacg.ca
www.nacg.ca

Forward-Looking Information

The information provided in this release contains forward-looking statements. Forward-looking statements include statements preceded by, followed by or that include the words “expected”, “estimated” or similar expressions, including the anticipated revenues and backlog to be generated by the contract. The material factors or assumptions used to develop the above forward-looking statements and the risks and uncertainties to which such forward-looking statements are subject are highlighted in the Company’s MD&A for the year ended December 31, 2023, and quarter ending September 30, 2024. Actual results could differ materially from those contemplated by such forward-looking statements because of any number of factors and uncertainties, many of which are beyond NACG’s control. For more complete information about NACG, please read our disclosure documents filed with the SEC and the CSA. These free documents can be obtained by visiting EDGAR on the SEC website at www.sec.gov or on the CSA website at www.sedarplus.com.

FAQ

How many shares can NOA purchase under its new automatic share purchase plan?

NOA can purchase up to 2,087,577 common shares under the automatic share purchase plan (ASPP).

When does NOA's normal course issuer bid (NCIB) expire?

NOA's normal course issuer bid (NCIB) expires on November 3, 2025.

When does NOA's automatic share purchase plan (ASPP) become effective?

NOA's automatic share purchase plan (ASPP) becomes effective on January 9, 2025.

Through which exchanges will NOA's share purchases be executed?

The purchases will be executed through the Toronto Stock Exchange (TSX), New York Stock Exchange (NYSE), and alternative trading systems in Canada and the United States.

What are the conditions for termination of NOA's ASPP?

The ASPP will terminate when either the NCIB expires, the maximum number of shares are purchased, or the Company terminates the plan.