OKOTOKS, AB, March 7, 2022 /CNW/ - (TSX: MTL) Mullen
Group Ltd. ("Mullen Group" and/or the "Corporation")
announced today that it has received approval from the Toronto
Stock Exchange (the "Exchange") for the renewal of its
normal course issuer bid (the "Bid").
For its normal course issuer bid that began on March 9, 2021 and that will expire on
March 8, 2022, Mullen Group
previously received approval from the Exchange to repurchase up to
7,928,623 common shares of the Corporation ("Shares").
Of this amount, the Corporation has already repurchased 4,160,956
Shares for a total cost of approximately $52.5 million, representing a volume weighted
average price of $12.61 per
Share.
Pursuant to the renewed Bid, the Corporation may repurchase from
time to time up to a maximum of 8,828,623 Shares, which
represents approximately 10% of the Corporation's Public Float (as
that term is defined in the policies of the Exchange) between
March 10, 2022 and March 9, 2023. Purchases may be made through the
facilities of the Exchange or through alternative Canadian trading
systems, if eligible. Any Shares purchased under the Bid will be
cancelled. The price which the Corporation will pay for any such
Shares will be the prevailing market price at the time of
acquisition. The actual number of Shares which may be purchased
pursuant to the Bid will be determined by management of the
Corporation.
As of February 28, 2022, the
Corporation has 93,876,859 Shares issued and outstanding. The
average daily trading volume of the Shares on the Exchange
("ADTV") for the most recently completed six calendar months
is 294,235. Pursuant to Exchange policies, the maximum number of
Shares that may be purchased in one day pursuant to the Bid will be
the greater of 1,000 and 25.0% of ADTV which amounts to
73,558 Shares, subject to certain prescribed exceptions.
The Corporation entered into an automatic securities purchase
plan (the "ASPP") with its broker, Scotia Capital Inc., to
allow for the repurchase of Shares at all times during the course
of the Bid including when the Corporation ordinarily would not be
active in the market due to its own internal trading blackout
periods, insider trading rules or otherwise. The ASPP is subject to
a limitation that restricts the cumulative number of Share
repurchases during the Bid to the lesser of 4.0 million Shares or
$45.0 million. The ASPP was
entered into and adopted in accordance with applicable Canadian
securities laws. Subject to Exchange approval, the ASPP may
be amended by the parties to increase the number of Shares that may
be repurchased or the budget for the repurchases made under the
ASPP. The funding for any purchase pursuant to the Bid will
be financed out of the working capital of the Corporation.
The Board of Directors continues to believe that the underlying
value of the Corporation may not be reflected in the current market
price of its Shares. As a result, depending upon future price
movements and other factors, the Board believes that the Shares may
represent an attractive investment to the Corporation in the best
interests of the Corporation and its shareholders. Furthermore, the
purchases are expected to benefit all persons who continue to hold
Shares by increasing their equity interest in the Corporation if
the repurchased Shares are cancelled.
A copy of the Corporation's notice filed with the Exchange may
be obtained, by any shareholder without charge, by contacting the
Corporation's Corporate Secretary & Vice President, Corporate
Services.
About Mullen Group Ltd.
Mullen Group is one of North
America's largest logistics providers. Our network of
independently operated businesses provide a wide range of service
offerings including less-than-truckload, truckload, warehousing,
logistics, transload, oversized, third-party logistics and
specialized hauling transportation. In addition, we provide a
diverse set of specialized services related to the energy, mining,
forestry and construction industries in western Canada, including water management, fluid
hauling and environmental reclamation. The corporate office
provides the capital and financial expertise, legal support,
technology and systems support, shared services and strategic
planning to its independent businesses.
Mullen Group is a publicly traded corporation listed on the
Toronto Stock Exchange under the symbol "MTL".
Additional information is available on our website at
www.mullen-group.com or on the Corporation's issuer profile on
SEDAR at www.sedar.com.
Contact Information
Mr. Murray K. Mullen
- Chair of the Board, Chief Executive Officer and
President
Mr. Richard J. Maloney - Senior Vice
President
Ms. Joanna K. Scott - Corporate
Secretary & Vice President, Corporate Services
121A - 31 Southridge Drive
Okotoks, Alberta, Canada T1S
2N3
Telephone: 403-995-5200
Fax: 403-995-5296
Forward-Looking Statements
Certain statements included in this news release constitute
"forward-looking statements" under Canadian securities laws,
including statements relating to potential purchases of common
shares for cancellation under a normal course issuer bid, the
possibility of any amendment to the ASPP to increase the number of
Shares that may be repurchased or the budget for the repurchases
during the Bid, future benefits of holding common shares of the
Corporation, and future benefits resulting from the purchase of
common shares of the Corporation through the normal course issuer
bid. By their nature, forward-looking statements involve risks,
uncertainties and assumptions. The Corporation cautions that its
assumptions may not materialize and that current economic
conditions render such assumptions, although reasonable at the time
they were made, subject to greater uncertainty. Forward-looking
statements may be identified by the use of terminology such as
"believes", "expects", "anticipates", "assumes", "outlook",
"plans", "targets", or other similar words.
Forward-looking statements are not guarantees of future
performance and involve risks, uncertainties and other factors
which may cause the actual results or performance of the
Corporation to be materially different from the outlook or any
future results or performance implied by such statements.
Accordingly, readers are advised not to place undue reliance on
forward-looking statements. Important risk factors that could
affect the forward-looking statements include, but are not limited
to, the effects of general economic and business conditions;
industry competition; inflation, currency and interest rate
fluctuations; changes in fuel prices; legislative and/or regulatory
developments; compliance with environmental laws and regulations;
actions by regulators; increases in maintenance and operating
costs; security threats; reliance on technology and related
cybersecurity risk; trade restrictions or other changes to
international trade arrangements; transportation of hazardous
materials; various events which could disrupt operations, including
natural events such as severe weather, droughts, fires, floods and
earthquakes; climate change; labor negotiations and disruptions;
environmental claims; uncertainties of investigations, proceedings
or other types of claims and litigation; timing and completion of
capital programs; and other risks detailed from time to time in
reports filed by Mullen Group with securities regulators in
Canada. Reference should be made
to Mullen Group's Management's Discussion and Analysis and Annual
Information Form both of which are dated February 9, 2022 and can be found under the
Corporation's issuer profile on SEDAR (www.sedar.com) and on Mullen
Group's website (www.mullen-group.com), for a description of major
risk factors.
Forward-looking statements reflect information as of the date on
which they are made. Mullen Group assumes no obligation to update
or revise forward-looking statements to reflect future events,
changes in circumstances, or changes in beliefs, unless required by
applicable securities laws. In the event Mullen Group does update
any forward-looking statement, no inference should be made that
Mullen Group will make additional updates with respect to that
statement, related matters, or any other forward-looking
statement.
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SOURCE Mullen Group Ltd.