Enter Wall Street with StreetInsider Premium. Claim your one week free trial here.
SAULT STE. MARIE, Ontario, March 01, 2022 (GLOBE NEWSWIRE) — 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 and when appropriate opportunities arise. will show up. The Company believes that the market price of the Shares may, from time to time, not fully reflect their value and therefore the purchase of Shares would be in the best interests of the Company and an attractive use of available funds. .
Pursuant to the public tender offer, the Company may acquire, from time to time, over a period of 12 months beginning on March 3, 2022 and ending on 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 as of February 18, 2022. In accordance with TSX rules, the number of shares that may be purchased under the tender offer is subject to a daily maximum current stock of 16,586 shares (equivalent to 25% of 66,345 shares, being the average daily trading volume over the last six calendar months), subject to certain exceptions prescribed by the TSX, including exceptions relating to purchases in block. In addition, all purchases made under the Tender Offer will be made in accordance with Rule 10b-18 of the United States Securities Exchange Act of 1934, as amended (the “Exchange Act”).
The issuer bid begins on March 3, 2022 and will end on March 2, 2023, whichever is earlier, or on an earlier date on which the company completes its purchases pursuant to the issuer bid or gives notice of termination. Purchases under the issuer bid will be made through the facilities of the TSX, NASDAQ or other Canadian systems and in accordance with applicable regulatory requirements at a price per share equal to the market price at the time of the ‘acquisition. All shares purchased under the issuer bid will be canceled upon purchase.
As part of the OPRCA, the Company has entered into an automatic redemption program (the “Plan”) with its designated broker. The plan is intended to permit the purchase of shares under the issuer bid at times when it would not normally be permitted to purchase shares due to regulatory restrictions and customary blackout periods. imposed. 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 laws and has been reviewed by the TSX.
For more details regarding the terms of the tender offer, readers are referred to the Company’s press release dated 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 current crude steel production capacity of approximately 2.8 million tonnes per year, the size and diversity of Algoma’s capabilities allow it to deliver responsive, customer-focused product solutions straight from the pocket. from casting to direct applications in the automotive, construction, energy, defense and manufacturing sectors. Algoma is a major supplier of steel products to customers in Canada and the US Midwest and is the only producer of steel plate in Canada. The Company’s plant is one of the lowest cost producers of hot-rolled (HRC) steel plate in North America, thanks in part to its Direct Strip Production Complex (“DSPC”) at state-of-the-art technology, which is the newest thin slab color in North America with direct coupling to a Basic Oxygen Furnace (BOF) smelter.
Algoma has made several significant improvements over the past few years that should translate into better long-term profitability for the business. Algoma has upgraded its DSPC facility and recently installed its No. 2 Ladle Metallurgy Furnace. In addition, the Company has ongoing cost reduction initiatives and is in the process of upgrading its plate rolling facilities.
Today, Algoma is on a journey of transformation, investing in its people and processes, optimizing and modernizing to ensure a sustainable future. Our customer focus, growing capacity and courage to meet industry challenges firmly positions us as your partner in steel.
Caution Regarding Forward-Looking Statements
This press release contains “forward-looking information” under applicable Canadian securities laws and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”), including statements regarding Algoma’s strategic direction. Goals. These forward-looking statements are generally identified by the words “believe”, “project”, “expect”, “anticipate”, “estimate”, “intend”, “strategy”, “future”, “opportunity “, “plan,” “pipeline,” “may,” “should,” “will,” “would,” “will,” “continue,” “probably 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 contained herein. Readers should also consider the other risks and uncertainties set forth in the section titled “Risk Factors” and “Caution Regarding Forward-Looking Statements” in Algoma’s public filings, including the Form Registration Statement. 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 place undue reliance on forward-looking statements, and Algoma undertakes no obligation and does not intend to update or revise such forward-looking statements, whether as a result of new information, future events or otherwise.
For investor inquiries, please contact:
Treasurer & Head of Investor Relations
Algoma Steel Group Inc.
Email: [email protected]
For more information please contact:
Communication & Branding Manager
Algoma Steel Group Inc.
Email: [email protected]