MISSISSAUGA, ON, Nov. 4, 2024
/CNW/ - Cargojet Inc. ("Cargojet" or the "Corporation") (TSX: CJT)
today announced that the Toronto Stock Exchange ("TSX") has
accepted its notice of intention to proceed with the renewal of its
normal course issuer bid ("NCIB") for a portion of its common
voting shares and variable voting shares (together, the
"Shares").
Normal Course Issuer Bid
The Corporation is renewing the NCIB because it believes that it
provides flexibility in respect of its capital allocation strategy
to maximize shareholder value, particularly at times when its
Shares may trade in a price range that may not fully reflect the
underlying value of the Shares. Any purchases made under the NCIB,
which will begin on November 11,
2024, and end no later than November
10, 2025, are made by Cargojet subject to favourable market
conditions at the prevailing market price at the time of
acquisition through the facilities of the TSX and/or alternative
Canadian trading systems.
Pursuant to the notice, Cargojet intends to purchase up to
1,500,000 Shares (the "Aggregate Limit"), during the twelve-month
period commencing November 11, 2024
and ending November 10, 2025. The
Corporation may fulfill such Aggregate Limit by the repurchase of
the Shares as appropriate opportunities arise from time to time.
The Corporation intends to acquire up to a maximum of 1,500,000
Shares, representing approximately 9.46% of its outstanding Shares.
As at November 4, 2024, there were
15,861,823 Shares outstanding. Under the NCIB, other than purchases
made under block purchase exemptions, Cargojet may purchase up to
13,996 Shares on the TSX during any trading day, which represents
approximately 25% of the average daily trading volume, as
calculated in accordance with TSX rules. Any Shares purchased under
the NCIB will be cancelled.
Under Cargojet's previous NCIB which commenced on November 9, 2023 and expires on November 8, 2024 (the "2023 NCIB"), Cargojet
previously sought and received approval from the TSX to repurchase
up to 1,500,000 Shares. Cargojet repurchased 1,351,335 Shares for
cancellation under the 2023 NCIB at a weighted average price of
approximately $116.41 per Share.
All repurchases under the 2023 NCIB were conducted through the
facilities of the TSX or alternative Canadian trading systems.
Automatic Share Purchase Plan
In connection with the NCIB, the Corporation entered into an
automatic share purchase plan ("ASPP") with a designated broker.
Pursuant to the ASPP, the Corporation has instructed the designated
broker to make purchases under the NCIB in accordance with the
terms of the ASPP. Such purchases will be determined by the
designated broker at its sole discretion based on purchasing
parameters set by Cargojet in accordance with the rules of the TSX,
applicable securities laws and the terms of the ASPP. The ASPP has
been pre-cleared by the TSX and will be implemented today. All
purchases made under the ASPP will be included in computing the
number of Shares purchased under the NCIB.
About Cargojet
Cargojet is Canada's leading
provider of time sensitive premium air cargo services to all major
cities across North America,
providing dedicated, ACMI and international charter services and
carries over 25,000,000 pounds of cargo weekly. Cargojet operates
its network with its own fleet of 41 cargo aircraft.
Notice on Forward Looking Statements:
Certain statements contained herein constitute "forward-looking
statements", including with respect to the Corporation's intention
to purchase Shares under the NCIB and ASPP, as described above, and
the timing and benefits of such purchases. Forward-looking
statements look into the future and provide an opinion as to the
effect of certain events and trends on the business.
Forward-looking statements may include words such
as "plans," "intends," "anticipates,"
"should," "estimates," "expects,"
"believes," "indicates," "targeting," "suggests" and similar
expressions. These forward-looking statements are based on current
expectations and entail various risks and uncertainties. Reference
should be made to the Corporation's most recent Annual Information
Form filed with the Canadian securities regulators, and its most
recent Consolidated Financial Statements and Notes thereto and
related Management's Discussion and Analysis (MD&A), for a
summary of major risks. Actual results may materially
differ from expectations, if known
and unknown risks or uncertainties
affect our business, or if our
estimates or assumptions prove inaccurate. The forward-looking
statements contained or incorporated by reference in this news
release represent Cargojet's expectations as of the date of this
news release (or as of the date they are otherwise stated to be
made) and are subject to change after such date. However, Cargojet
disclaims any intention or obligation to update or revise any
forward-looking statements whether because of new information,
future events or otherwise, except as required under applicable
securities laws. In the event Cargojet does update any
forward-looking statement, no inference should be made that
Cargojet will make additional updates with respect to that
statement, related matters, or any other forward-looking
statement.
The TSX has not reviewed and does not accept responsibility for
the adequacy or accuracy of this statement.
SOURCE Cargojet Inc.
