CAMBRIDGE, ON, Dec. 13, 2021 /CNW/ - ATS Automation Tooling
Systems Inc. (TSX: ATA) ("ATS" or the "Company") today announced
that the Toronto Stock Exchange ("TSX") has accepted the Company's
notice of intention to make a normal course issuer bid
("NCIB").
As of December 1, 2021, ATS had a
total of 92,253,624 common shares issued and outstanding. Under the
NCIB, ATS will have the ability to purchase for cancellation up to
a maximum of 7,383,567 common shares, representing approximately
10% of the public float of 73,835,672 common shares of the Company
that were issued and outstanding as of December 1, 2021.
Purchases under the NCIB will be made through the facilities of
the TSX and/or alternative Canadian trading systems in accordance
with applicable regulatory requirements, during the twelve-month
period commencing on December 15,
2021 and ending on or before December
14, 2022. The average daily trading volume of the
common shares on the TSX for the six calendar months ending
November 30, 2021 was 195,742 common
shares. On any given trading day, ATS will not purchase more than
25% of such average daily trading volume, representing 48,935
common shares, except where such purchases are made in accordance
with available block purchase exemptions. The common shares
purchased under this NCIB will be cancelled.
Some purchases under the NCIB may be made pursuant to an
automatic purchase plan that has been entered into between ATS and
its broker. This plan will enable the purchase of ATS common shares
when ATS would not ordinarily be active in the market due to
internal trading blackout periods, insider trading rules, or
otherwise. In connection with the early renewal of the NCIB prior
to the original expiry of the 2020 NCIB (as defined below), the
Company has terminated the previous automatic purchase plan in
respect of the 2020 NCIB.
ATS believes that there are times when the market price of its
common shares may not reflect their underlying value and that the
purchase of shares by ATS will both provide liquidity to existing
shareholders and benefit remaining shareholders. The NCIB is viewed
by ATS management as one component of an overall capital structure
strategy and complementary to its acquisition growth plans.
The NCIB follows the Company's normal course issuer bid for the
period ended December 10, 2021 (the
"2020 NCIB"). Under the 2020 NCIB, the Company had obtained
approval to purchase up to 7,351,834 common shares. The Company's
2020 NCIB began on December 23, 2020
and ended on December 10, 2021. Under
the 2020 NCIB, the Company did not repurchase any common
shares.
About ATS
ATS is an industry-leading automation
solutions provider to many of the world's most successful
companies. ATS uses its extensive knowledge base and global
capabilities in custom automation, repeat automation, automation
products and value-added services, including pre-automation and
after-sales services, to address the sophisticated manufacturing
automation systems and service needs of multinational customers in
markets such as life sciences, food & beverage, transportation,
consumer products, and energy. Founded in 1978, ATS employs over
5,000 people at 28 manufacturing facilities and over 50 offices in
North America, Europe, Southeast
Asia and China. The
Company's shares are traded on the Toronto Stock Exchange under the
symbol ATA. Visit the Company's website at
www.atsautomation.com.
Forward-looking Statements
Certain information
contained in this press release may constitute forward-looking
information under applicable securities laws, including statements
related to ATS' intentions with respect to the NCIB and purchases
thereunder and the effects of repurchases under the bid.
Forward-looking statements, by their very nature, involve inherent
risks and uncertainties and are based on several assumptions, both
general and specific. Much of this information can be identified by
looking for words such as "believe", "expects", "expected", "will",
"intends", "projects", "anticipates", "estimates", "continues" or
similar words. Purchases made under the NCIB are not guaranteed and
may be suspended at the discretion of ATS' Board of Directors.
Forward-looking statements are based on current information and
expectations that involve a number of risks and uncertainties,
which could cause actual results to differ materially from those
anticipated. Forward-looking statements contained in this press
release are made as of the date hereof and are subject to change.
ATS assumes no obligation to revise or update forward looking
statements to reflect new circumstances, except as required by
law.
SOURCE ATS Automation Tooling Systems Inc.