VANCOUVER, Aug. 20, 2020 /CNW/ - Ritchie Bros.
Auctioneers Incorporated (NYSE: RBA) (TSX: RBA) (the "Company" or
"Ritchie Bros.") announces today
that it has obtained the approval of the Toronto Stock Exchange
(the "TSX") to commence a normal course issuer bid ("NCIB"). The
NCIB will allow the Company to use its share repurchase program to
primarily neutralize share dilution from options.
NCIB Details
The NCIB will commence on August 24,
2020 and will terminate on August 23,
2021 or on such earlier date as the Company may complete its
purchases thereunder or as it may otherwise determine. Under the
NCIB, the Company may purchase up to the lesser of 5,441,249 common
shares (such amount representing 5% of the common shares of the
Company issued and outstanding as of August
11, 2020) and that number of common shares worth an
aggregate of US$100 million.
Furthermore, subject to certain exemptions for block purchases, the
maximum number of its common shares that the Company may purchase
on any one trading day on the TSX is 78,011 common shares, such
amount representing 25% of the average daily trading volume of the
common shares of the Company on the TSX alone for the six
calendar months ended July 31, 2020,
being 312,047 common shares.
As of August 11, 2020, 108,824,986
common shares of the Company were issued and outstanding. All
common shares of the Company purchased under the new NCIB will be
cancelled.
The Company believes that purchasing its common shares for
cancellation to mitigate dilution from options represents an
appropriate and desirable use of available funds.
The Company's common shares under the NCIB may be purchased
through a combination of an automatic repurchase plan (the
"Purchase Plan"), as well as at management's discretion in
compliance with regulatory requirements and given market, cost and
other considerations. Under the Purchase Plan, the Company's broker
may repurchase shares under the NCIB at any time including, without
limitation, when the Company would ordinarily not be permitted to
do so due to regulatory restrictions or self-imposed blackout
periods. Purchases will be made by the Company's broker based upon
the parameters prescribed by the TSX, applicable Canadian and U.S.
securities laws and the terms of the parties' written
agreement.
Purchases under the NCIB may be made at the then current market
price of the Company's common shares through the facilities of the
TSX, the New York Stock Exchange (the "NYSE") or alternative
trading platforms in Canada or
the United States by means of open
market transactions or by such other means as may be permitted by
applicable Canadian and U.S. securities laws.
There can be no assurance as to the precise number of common
shares that will be repurchased under the NCIB, or the aggregate
dollar amount of the common shares purchased. The Company may
discontinue purchases at any time, subject to compliance with
applicable regulatory requirements.
Pursuant to its previous normal course issuer bid, the Company
sought and received approval from the TSX to purchase up to the
lesser of 5,449,204 common shares and that number of common shares
worth an aggregate of US$100 million,
and during the last twelve months has purchased 2,748,986 common
shares through open market purchases on the TSX and the NYSE at a
weighted average price per share of US$34.62.
About Ritchie
Bros.
Established in 1958, Ritchie Bros. (NYSE and TSX: RBA) is a global
asset management and disposition company, offering customers
end-to-end solutions for buying and selling used heavy equipment,
trucks and other assets. Operating in a number of sectors,
including construction, transportation, agriculture, energy, oil
and gas, mining, and forestry, the company's selling channels
include: Ritchie
Bros. Auctioneers, the world's largest industrial
auctioneer offers live auction events with online bidding;
IronPlanet, an online marketplace with featured weekly auctions and
providing the exclusive IronClad Assurance® equipment
condition certification; Marketplace-E, a controlled marketplace
offering multiple price and timing options; Mascus, a
leading European online equipment listing service; and Ritchie Bros. Private Treaty, offering privately
negotiated sales. The company's suite of multichannel sales
solutions also includes RB Asset Solutions, a complete end-to-end
asset management and disposition system. Ritchie Bros. also offers sector-specific
solutions including GovPlanet, TruckPlanet, and Kruse Energy
Auctioneers, plus equipment financing and leasing through
Ritchie Bros.
Financial Services. For more information about Ritchie Bros., visit RitchieBros.com.
Forward-looking Statements
This news release contains
forward-looking statements and forward-looking information within
the meaning of applicable U.S. and Canadian securities legislation
(collectively, "forward-looking statements"), including, in
particular, statements regarding the NCIB, potential share
repurchases, investment opportunities, cash flows and dividends.
Forward-looking statements are statements that are not historical
facts and are generally, although not always, identified by words
such as "expect", "plan", "anticipate", "project", "target",
"potential", "schedule", "forecast", "budget", "estimate", "intend"
or "believe" and similar expressions or their negative
connotations, or statements that events or conditions "will",
"would", "may", "could", "should" or "might" occur. All such
forward-looking statements are based on the opinions and estimates
of management as of the date such statements are made.
Forward-looking statements necessarily involve assumptions, risks
and uncertainties, certain of which are beyond the Company's
control, including the duration and impact of the COVID-19 pandemic
on the Company's operations, the operations of customers and
general economic conditions; the numerous factors that influence
the supply of and demand for used equipment; economic and other
conditions in local, regional and global sectors; the Company's
ability to successfully integrate IronPlanet, and to receive the
anticipated benefits of the IronPlanet acquisition; and the risks
and uncertainties set forth in the Company's Annual Report on Form
10-K for the year ended December 31,
2019 and the Company's Form 10-Q for the quarter ended
June 30, 2020, which are available on
the SEC, SEDAR, and Company websites. The foregoing list is not
exhaustive of the factors that may affect the Company's
forward-looking statements. There can be no assurance that
forward-looking statements will prove to be accurate, and actual
results may differ materially from those expressed in, or implied
by, these forward-looking statements. Forward looking statements
are made as of the date of this news release and the Company does
not undertake any obligation to update the information contained
herein unless required by applicable securities legislation. For
the reasons set forth above, you should not place undue reliance on
forward looking statements.
View original
content:http://www.prnewswire.com/news-releases/ritchie-bros-receives-tsx-approval-for-normal-course-issuer-bid-share-repurchase-program-301115356.html
SOURCE Ritchie Bros.
Auctioneers