By: The Working Forest Staff
Vancouver, BC — Canfor Corporation has announced it has received regulatory approval to effect an early renewal of a normal course issuer bid that will expire in June, 2022.
Under the new bid, the Company may purchase for cancellation up to 6,224,680 common shares of the Company (the “Shares”) or approximately 5% of the 124,493,600 Shares outstanding as of March 15, 2022, at prevailing market prices, in accordance with the rules of The Toronto Stock Exchange (the “TSX”).
The Company repurchased a total of 725,800 Shares for cancellation from June 16, 2021, to and including March 15, 2022, under its prior bid (the “2021 NCIB”), at a volume-weighted average price of $26.4482 per share, through the facilities of the TSX and/or Canadian alternative trading systems.
Under the 2021 NCIB, the Company sought and was approved to purchase 6,260,970 Shares. The renewed normal course issuer bid will commence on March 21, 2022, and continue until March 20, 2023, unless completed or terminated earlier.
The Company has terminated the 2021 NCIB effective March 15, 2022. As a result, the 725,800 Shares purchased under the 2021 NCIB will be deducted from the renewed bid’s 6,224,680 Share limit. Canfor believes the normal course issuer bid is in the best interests of the Company and its shareholders.
Purchases of Shares made under the bid will be effected through the facilities of the TSX and/or through one or more Canadian alternative trading systems. The Company will be entering into an automatic share purchase plan with a broker providing for the repurchase of Shares under the renewed issuer bid.
Purchases will be made at the discretion of the Company at prevailing market prices, through the facilities of the TSX, in compliance with regulatory requirements. Daily purchases will be restricted to not more than 62,670 Shares, representing 25% of the 250,682 average daily trading volume of the Shares on the TSX, subject to certain prescribed exemptions.
There can be no assurance as to the precise number of Shares that will be repurchased under the share repurchase program. The Company may discontinue its purchases at any time, subject to compliance with applicable regulatory requirements. The Company intends to hold all Shares acquired under the issuer bid for cancellation.