LONGUEUIL, QC, May 19, 2022 /CNW Telbec/ - Héroux-Devtek Inc. (TSX: HRX) ("Héroux-Devtek" or the "Corporation"), a leading international manufacturer of aerospace products and the world's third-largest landing gear manufacturer, today announced that the Toronto Stock Exchange ("TSX") has approved the renewal of Héroux-Devtek's normal course issuer bid ("NCIB"). Under the NCIB, Héroux-Devtek has the right to purchase for cancellation, from May 25, 2022 to May 24, 2023, a maximum of 1,896,079 common shares, representing, as of May 11, 2022, 10% of the public float of 18,960,792 common shares. The Corporation had 34,486,776 common shares issued and outstanding as of May 11, 2022.
Under its prior bid (the "2021 NCIB"), the Corporation received the approval of the TSX to repurchase for cancellation up to 2,412,279 common shares. Under the 2021 NCIB, the Corporation repurchased a total of 2,412,279 common shares, by means of open market transactions through the facilities of the TSX and through Canadian alternative trading systems, and by way of a private agreement under an issuer bid exemption order issued by the Autorité des marchés financiers, at a volume weighted average price of $17.83 per common share.
Any purchases of shares by Héroux-Devtek under the NCIB will be effected through the facilities of TSX as well as on Canadian alternative trading systems, at prevailing market prices, and any common shares so purchased by the Corporation will be cancelled. The actual number of shares that may be purchased and the timing of any such purchases will be determined by Héroux-Devtek. Any purchases made by Héroux-Devtek pursuant to the NCIB will be made in accordance with the rules and policies of the TSX.
Héroux-Devtek believes that the NCIB is a flexible means to optimize the capital allocation of the Corporation and provide immediate value for shareholders while not compromising the Corporation's position for future growth initiatives.
During the most recently completed six months, the average daily trading volume for the common shares of Héroux-Devtek on the TSX less the number of shares purchased pursuant to the 2021 NCIB was 20,981 common shares. Consequently, under the policies of the TSX, Héroux-Devtek will have the right to repurchase under its NCIB, during any trading day, a maximum of 5,245 common shares, representing 25% of the average daily trading volume. In addition, the Corporation 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 Héroux-Devtek, in accordance with the TSX policies. Héroux-Devtek will fund the purchases through available cash.
Desjardins Capital Markets ("Desjardins") has been appointed by the Corporation to make the purchases under the NCIB.
In connection with the NCIB, Héroux-Devtek has entered into an automatic share purchase plan ("ASPP") with Desjardins to facilitate purchases at times when the Corporation would not normally be active in the market due to regulatory restrictions or self-imposed trading blackouts.
Except for historical information provided herein, this press release contains information and statements of a forward-looking nature concerning the potential future purchases by the Corporation of its common shares.
Forward-looking statements are based on assumptions and uncertainties as well as on management's best possible evaluation of future events. These statements are no guarantees of future performance or events and readers are cautioned not to place undue reliance on such forward-looking statements. There can be no assurance that the Corporation will repurchase all or any of its common shares subject to the NCIB.
As a result, readers are advised that actual results may differ from expected results. Please see the Risk and Uncertainties section under Additional Information in the Corporation's MD&A for the fiscal year ended March 31, 2022, for further details regarding the material assumptions. The forward-looking statements set forth herein reflects the Corporation expectations as at the date of this press release and is subject to change after such date. Héroux-Devtek disclaims any intention or obligation to update or revise any forward-looking statements other than as required by law.
Héroux-Devtek Inc. (TSX: HRX) is an international company specializing in the design, development, manufacture, repair and overhaul of aircraft landing gear, hydraulic and electromechanical actuators, custom ball screws and fracture-critical components for the Aerospace market. The Corporation is the third-largest landing gear company worldwide, supplying both the defence and commercial sectors. Approximately 94% of the Corporation's sales are outside of Canada, including about 58% in the United States. The Corporation's head office is located in Longueuil, Québec with facilities in Canada, the United States, the United Kingdom and Spain.
SOURCE Héroux-Devtek Inc.
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