EcoSynthetix Announces Normal Course Issuer Bid
BURLINGTON, ON, May 10, 2022 /CNW/ – EcoSynthetix Inc. ECO (“EcoSynthetix” or the “Company”), a renewable chemicals company that produces a portfolio of commercially proven bio-based products, today announced its intention to launch a normal course issuer bid (the “Offer”) to purchase, through the facilities of the Toronto Stock Exchange (“TSX”) or other Canadian trading systems, certain of its outstanding common shares (“Shares”).
The number of Shares to be purchased during the Offer period from May 13, 2022 for May 12, 2023 will not exceed 3,851,946 Shares, i.e. approximately 10% of the Shares outstanding at May 2, 2022, other than Shares held by directors, senior executives and principal security holders (the “Public Float”). The actual number of Shares that may be purchased under the Offer and the timing of such purchases will be determined by the management of EcoSynthetix. Like a May 2, 2022 there were 58,907,605 Shares issued and outstanding and the Public Float consisted of 38,519,466 Shares. The average daily trading volume for shares on the TSX (“ADTV”) for the most recently completed six month period was 59,684 shares. Pursuant to the terms of the Offer, EcoSynthetix will not acquire on any given trading day more than 25% of the ADTV for the most recent six-month period, being 14,921 Shares, subject to purchase exceptions in block. All purchases made under the Offer will be made through the facilities of the TSX or other Canadian trading systems or by any other means permitted by applicable Canadian securities laws and EcoSynthetix will cancel such actions. purchased under the offer. The price the Company will pay for Shares in open market transactions will be the market price at the time of purchase.
The offer has been authorized by EcoSynthetix’s board of directors to allow EcoSynthetix to purchase shares if, in the opinion of management, the purchases can be made on terms that will enhance the value of the outstanding shares. remaining.
EcoSynthetix is undertaking the Offering because it believes that the market may undervalue the EcoSynthetix Shares from time to time and the Shares may trade within a price range which may not adequately reflect the value of the Shares in relation to the business, the assets and the future. EcoSynthetix Outlook from time to time.
Pursuant to the previous Notice of Intention to Proceed with a Normal Course Issuer Bid, pursuant to which the Company sought and received TSX approval to purchase up to 3,998,113 shares, 319,500 shares were purchased for the period from May 13, 2021 for May 2, 2022. These Shares were purchased in open market transactions at the market price of the Shares at the time of acquisition. The volume-weighted average price paid for such Shares was $50.56 per share.
In connection with the Offer, the Company has also announced that it has set up an automatic stock purchase plan (the “Automatic Buyback Plan”) with its designated broker in order to facilitate purchases of its Shares in the framework of the Offer. Under the terms of the automatic repurchase plan, the Company’s designated broker may purchase shares under the issuer bid at times when the Company would not normally be active in the market due to regulatory restrictions or periods self-imposed bans. Purchases made under the automatic buyback program, if any, will be made by the Company’s designated broker within the parameters prescribed by the TSX, applicable Canadian securities laws and the terms of the written agreement between the Company and its Designated Broker. The Automatic Redemption Plan constitutes an “automatic plan” for purposes of applicable Canadian securities laws and has been pre-cleared by the TSX.
The Automatic Redemption Plan will be effective from May 13, 2022.
About EcoSynthetix Inc. (www.ecosynthetix.com)
EcoSynthetix, a 2022 Climate Positive Company, offers a range of sustainable engineered biopolymers that enable customers to reduce their use of harmful materials, such as formaldehyde and styrene-based chemicals. The company’s flagship products, DuraBind™, Bioform™ and EcoSphere®, are used to manufacture wood composites, personal care, paper and packaging, and deliver performance improvements, economic benefits and reduced waste. ‘carbon footprint. The Company is listed on the Toronto Stock Exchange ECO.
Certain statements in this press release constitute “forward-looking” statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, objectives or achievements of the Company, or the industry results, are materially different from any future results, performance, objectives or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this press release include, but are not limited to, statements regarding the number of shares to be purchased under the offer, if any, the price to be paid by the Company for any share purchased under the offer, if applicable. and the timing of those purchases. These statements reflect our current views regarding future events and operating performance and are based on information currently available to us, and speak only as of the date of this press release. These forward-looking statements involve a number of risks, uncertainties and assumptions and should not be read as guarantees of future performance or results, and will not necessarily be precise indications of whether or not such performance or results will be achieved. results. These assumptions and risks include, but are not limited to, the Company’s ability to successfully allocate necessary capital and develop new products, as well as the fact that our operating results and business prospects are subject to significant risks, volatility and uncertainty. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by these forward-looking statements, including the factors identified in the “Risk Factors” section. of the Annual Information Form dated February 24, 2022. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may differ materially from those described in this press release as anticipated, planned, anticipated, believed, estimated or expected. Except as required by applicable securities laws, we neither intend nor undertake any obligation to update these forward-looking statements.
SOURCE EcoSynthetix Inc.
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