Algoma Steel Group Announces Approval of Normal Course Issuer Bid
01 März 2022 - 11:30PM
Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) (“Algoma” or “the
Company”) announced today that the Toronto Stock Exchange (the
“TSX”) has approved the Company’s intention to make a normal course
issuer bid (“NCIB”) for a portion of its common shares (“Shares”)
as appropriate opportunities arise from time to time. The Company
believes that the market price of the Shares may not, from time to
time, fully reflect their value and accordingly the purchase of
Shares would be in the best interests of the Company and an
attractive use of available funds.
Pursuant to the NCIB, the Company may acquire,
from time to time, over a period of 12 months starting March 3,
2022 and ending March 2, 2023, up to a maximum of 7,397,889 of its
Shares, or approximately 5% of its 147,957,790 issued and
outstanding Shares as of February 18, 2022. In accordance with TSX
rules, the number of Shares that can be purchased pursuant to the
NCIB is subject to a current daily maximum of 16,586 Shares (which
is equal to 25% of 66,345 Shares, being the average daily trading
volume during the last six calendar months), subject to certain
exceptions prescribed by the TSX, including block purchase
exceptions. In addition, all purchases under the NCIB will be
conducted in accordance with Rule 10b-18 under the U.S. Securities
Exchange Act of 1934, as amended (the “Exchange Act”).
The NCIB commences on March 3, 2022 and will
terminate on the earlier of March 2, 2023, or such earlier time as
the Company completes its purchases pursuant to the NCIB or
provides notice of termination. Purchases under the NCIB will be
made through the facilities of the TSX, NASDAQ or through
alternative Canadian systems and in accordance with applicable
regulatory requirements at a price per Share equal to the market
price at the time of acquisition. All Shares purchased under the
NCIB will be cancelled upon their purchase.
In connection with the NCIB, the Company has
entered into an automatic repurchase plan (the "Plan") with its
designated broker. The Plan is intended to allow for the purchase
of Shares under the NCIB at times when it would ordinarily not be
permitted to purchase shares due to regulatory restrictions and
customary self-imposed blackout periods. The Plan is also intended
to meet the requirements of Rule 10b5-1 under the Exchange Act. The
Plan constitutes an "automatic securities purchase plan" for
purposes of applicable Canadian securities legislation and has been
reviewed by the TSX.
For further details regarding the terms of the
NCIB, readers are referred to the press release of the Company
issued on February 10, 2022 and available under the Company’s
profile on SEDAR at www.sedar.com.
About Algoma Steel Group
Inc.
Based in Sault Ste. Marie, Ontario, Canada,
Algoma is a fully integrated producer of hot and cold rolled steel
products including sheet and plate. With a current raw steel
production capacity of an estimated 2.8 million tons per year,
Algoma’s size and diverse capabilities enable it to deliver
responsive, customer-driven product solutions straight from the
ladle to direct applications in the automotive, construction,
energy, defense, and manufacturing sectors. Algoma is a key
supplier of steel products to customers in Canada and Midwest USA
and is the only producer of plate steel products in Canada. The
Company’s mill is one of the lowest cost producers of hot rolled
sheet steel (HRC) in North America owing in part to its
state-of-the-art Direct Strip Production Complex (“DSPC”), which is
the newest thin slab caster in North America with direct coupling
to a basic oxygen furnace (BOF) melt shop.
Algoma has achieved several meaningful
improvements over the last several years that are expected to
result in enhanced long-term profitability for the business. Algoma
has upgraded its DSPC facility and recently installed its No. 2
Ladle Metallurgy Furnace. Additionally, the Company has cost
cutting initiatives underway and is in the process of modernizing
its plate mill facilities.
Today Algoma is on a transformation journey,
investing in its people and processes, optimizing and modernizing
to secure a sustainable future. Our customer focus, growing
capability and courage to meet the industry’s challenges head-on,
position us firmly as your partner in steel.
Cautionary Statement Regarding
Forward-Looking Statements
This news release contains “forward-looking
information” under applicable Canadian securities legislation and
“forward-looking statements” within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995 (collectively, “forward
looking statements”), including statements regarding Algoma’s
strategic objectives. These forward-looking statements generally
are identified by the words “believe,” “project,” “expect,”
“anticipate,” “estimate,” “intend,” “strategy,” “future,”
“opportunity,” “plan,” “pipeline,” “may,” “should,” “will,”
“would,” “will be,” “will continue,” “will likely result,” and
similar expressions. Forward-looking statements are predictions,
projections and other statements about future events that are based
on current expectations and assumptions. Many factors could cause
actual future events to differ materially from the forward-looking
statements in this document. Readers should also consider the other
risks and uncertainties set forth in the section entitled “Risk
Factors” and “Cautionary Note Regarding Forward-Looking Statements”
in Algoma’s public filings, including the registration statement on
Form S-1 filed by Algoma with the Securities and Exchange
Commission and the prospectus filed with the Ontario Securities
Commission. Forward-looking statements speak only as of the date
they are made. Readers are cautioned not to put undue reliance on
forward-looking statements, and Algoma assumes no obligation and
does not intend to update or revise these forward-looking
statements, whether as a result of new information, future events,
or otherwise.
For Investor Inquiries, please contact:
Michael MoracaTreasurer & Investor Relations OfficerAlgoma
Steel Group Inc.Phone: 705.945.3300E-mail: IR@algoma.com
For more information, please contact:
Brenda Stenta Manager Communications & Branding Algoma Steel
Group Inc. Phone: +1.705.206.1022 E-mail:
brenda.stenta@algoma.com
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