MISSISSAUGA, ON, June 20, 2022 /CNW/ – Cargojet Inc. (“Cargojet” or the “Company”) (TSX: CJT) announced today that it has received approval from the Toronto Stock Exchange (“TSX”) to amend its public offering previously announced normal course issuer bid (“NCIB”) to increase the maximum number of Common Voting Shares and Variable Voting Shares (together, the “Shares”) that may be repurchased from 155,000 Shares, i.e. 0.92% of the public float at April 28, 2022 (the reference date for the OPRNA), to 1,500,000 Shares, or 8.91% of the public float on that date.
Cargojet’s board of directors believes that from time to time during the tender offer, the market price of the shares may not fully reflect the underlying value of the shares and that purchases of shares in part of the issuer bid may be a desirable use of funds that will create value for shareholders. Cargojet is positioned as a leader in its domestic and international business, which mitigates risks associated with capacity, customer pricing and capital expenditures, and enables it to pursue its growth strategies.
Any purchase made under the OPNA, which began on May 4, 2022 and will end no later than May 3, 2023are made by Cargojet subject to favorable market conditions at the prevailing market price at the time of acquisition through the facilities of the TSX and/or other Canadian trading systems.
Like a April 28, 2022, there were 17,324,258 Shares outstanding. Under the issuer bid, in addition to purchases made under block purchase exemptions, Cargojet may purchase up to 19,583 shares on the TSX during a trading day, representing approximately 25 % of average daily trading volume, as calculated in accordance with TSX rules. All Shares purchased under the OPRA are cancelled.
The Automatic Share Purchase Plan (“SSP”) entered into with a Designated Broker on May 2, 2022 remains unchanged. The RPEA allows for the purchase of shares under the issuer bid at times when the company would not normally be active in the market due to trading blackout periods that it has entered into. even imposed. Outside of these pre-determined blackout periods, Shares are purchased at the discretion of management
Cargojet is from Canada leading provider of premium time-sensitive air cargo services to all major cities across North America, providing dedicated, ACMI and international charter services and hauls over 25,000,000 pounds of cargo per week. Cargojet operates its network with its own fleet of 31 cargo aircraft.
Notice on Forward-Looking Statements
Certain statements contained herein constitute “forward-looking statements”, including with respect to the Company’s intention to purchase shares pursuant to the Tender Offer and the ASPP, as described below. above, the timing and benefits of such purchases, and the increase in the Company’s quarterly dividend. Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the company. Forward-looking statements may include words such as “anticipates”, “intends”, “anticipates”, “should”, “estimates”, “expects”, “believes”, “indicates”, “targets “, “suggests” and other expressions. These forward-looking statements are based on current expectations and involve various risks and uncertainties. Reference should be made to the Company’s most recent Annual Information Form filed with the Canadian securities regulators, as well as its most recent consolidated financial statements and notes thereto and related MD&A, for a summary of the principal risks . Actual results may differ materially from expectations if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove to be inaccurate. Forward-looking statements contained or incorporated by reference in this press release represent Cargojet’s expectations as of the date of this press release (or as otherwise stated) and are subject to change after such date. However, Cargojet disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. In the event that Cargojet updates any forward-looking statement, no inference should be drawn that Cargojet will make additional updates with respect to such statement, related matters or any other forward-looking statements.
The TSX has not reviewed and accepts no responsibility for the adequacy or accuracy of this statement.
SOURCE Cargojet Inc.
For further information: Pauline Dhillon, Chief Corporate Officer, Tel: (905) 501-7373, [email protected]