By: The Working Forest Staff
Vancouver, BC — Canfor Corporation has announced that it has received regulatory approval to renew a normal course issuer bid first launched in March 2013. Under the new bid, the Company may purchase for cancellation up to 6,260,970 common shares of the Company (the “Shares”) or approximately 5% of the 125,219,400 Shares outstanding as of March 1, 2019, at prevailing market prices, in accordance with the rules of The Toronto Stock Exchange (the “TSX”).
The Company repurchased a total of 3,406,080 Shares for cancellation from March 7, 2018, to and including March 1, 2019, under its prior bid, at a volume-weighted average price of $24.7473 per Share, through the facilities of the TSX and/or Canadian alternative trading systems. Under its prior bid, the Company sought and was approved to purchase 6,439,764 Shares.
The renewed normal course issuer bid will commence on March 7, 2019, and continue until March 6, 2020, unless completed or terminated earlier. 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 affected through the facilities of the TSX and/or through one or more Canadian alternative trading systems.
The Company’s subsidiary, Canfor Pulp Products Inc., has also announced the renewal of its normal course issuer bid for the purchase of up to 5% of its issued share capital, through the facilities and in accordance with the Rules of the TSX. 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 117,904 Shares, representing 25% of the 471,618 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.