BURLINGTON, ON, May 8, 2020 /CNW/ - EcoSynthetix Inc.
(TSX:ECO) ("EcoSynthetix" or the "Company"), a renewable chemicals
company that produces a portfolio of commercially proven bio-based
products, announced today that it intends to make a normal course
issuer bid (the "Bid") to repurchase, through the facilities of the
Toronto Stock Exchange ("TSX") or alternative Canadian trading
systems certain of its outstanding common shares ("Shares").
The number of Shares to be purchased during the period of the
Bid from May 13, 2020 to May 12, 2021 will not exceed
4,593,420 Shares being approximately 10% of the outstanding
shares as of May 7, 2020, other than
the Shares held by directors, senior officers and principal
security holders. The actual number of Shares which may be
purchased pursuant to the Bid and the timing of any such purchases
will be determined by the management of EcoSynthetix. As at
May 7, 2020 there were
57,096,713 Shares issued and outstanding. Pursuant to the
terms of the Bid, EcoSynthetix will not acquire on any given
trading day more than 25% of the average daily trading volume of
Shares for the most recently completed six-month period, being
14,721 Shares, other than block purchase exceptions. All purchases
made pursuant to the Bid will be made through the facilities of the
TSX or alternative Canadian trading systems or by such other means
as may be permitted by applicable Canadian securities laws and
EcoSynthetix will cancel any such Shares purchased pursuant to the
Bid.
The Bid has been authorized by the Board of Directors of
EcoSynthetix to allow EcoSynthetix to purchase Shares if in the
opinion of management the purchases can be made on terms which will
enhance the value of the remaining outstanding Shares.
EcoSynthetix is undertaking the Bid because it believes that the
market may undervalue the common shares of EcoSynthetix from time
to time and that the common shares may trade in a price range which
may not adequately reflect the value of such shares in relation to
the business, assets and future prospects of EcoSynthetix from time
to time.
Pursuant to the previous notice of intention to conduct a normal
course issuer bid, under which the Company sought and received
approval from the TSX to purchase up to 4,714,286 Common Shares,
1,568,568 Shares were purchased for the period from May 13, 2019 to May 7,
2020. Such Shares were purchased in open market transactions
at the market price of the Shares at the time of acquisition. The
volume weighted average price paid for such Shares was $2.24 per Share.
In connection with the Bid, the Company also announced that it
has implemented an automatic securities purchase plan (the
"Automatic Repurchase Plan") with its designated broker in order to
facilitate the purchases of its Shares under the Bid. Under the
Automatic Repurchase Plan, the Company's designated broker may
purchase Shares pursuant to the NCIB at times when the Company
ordinarily would not be active in the market due to regulatory
restrictions or self-imposed blackout periods. Purchases made
pursuant to the Automatic Repurchase Plan, if any, will be made by
the Company's designated broker based upon the parameters
prescribed by the TSX, applicable Canadian securities laws and the
terms of the written agreement between the Company and its
designated broker. The Automatic Repurchase Plan constitutes an
"automatic plan" for the purposes of applicable Canadian securities
legislation and has been pre-cleared by the TSX.
The Automatic Repurchase Plan will be effective as of
May 13, 2020.
About EcoSynthetix Inc. (www.ecosynthetix.com)
EcoSynthetix offers a range of sustainable engineered biopolymers
that allow customers to reduce their use of harmful materials, such
as formaldehyde and styrene-based chemicals. The Company's flagship
products, DuraBind™ and EcoSphere®, are used to manufacture wood
composites, paper and packaging, and enable performance
improvements, economic benefits and sustainability. The Company is
publicly traded on the Toronto Stock Exchange (T:ECO).
Forward-Looking Statements
Certain statements in this Press Release constitute
"forward-looking" statements that involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance, objectives or achievements of the Company, or industry
results, to be materially different from any future results,
performance, objectives or achievements expressed or implied by
such forward looking statements. The forward-looking statements in
this Press Release include, but are not limited to, statements
regarding the number of Shares to be purchased under the Bid, if
any, and the timing of any such purchases, the Company's plans to
execute its commercial strategy, convert late-stage industrial
trial prospects into customers and expand the number of lines and
the volumes at existing customers, and other statements regarding
the Company's plans and expectations in 2020. These statements
reflect our current views regarding future events and operating
performance and are based on information currently available to us,
and speak only as of the date of this Press Release. These
forward-looking statements involve a number of risks, uncertainties
and assumptions and should not be read as guarantees of future
performance or results, and will not necessarily be accurate
indications of whether or not such performance or results will be
achieved. Those assumptions and risks include, but are not limited
to, the Company's ability to successfully allocate capital as
needed and to develop new products, as well as the fact that our
results of operations and business outlook are subject to
significant risk, volatility and uncertainty. Many factors could
cause our actual results, performance or achievements to be
materially different from any future results, performance or
achievements that may be expressed or implied by such
forward-looking statements, including the factors identified in the
"Risk Factors" section of the Company's Annual Information Form
dated March 2, 2020. In addition to the risk factors
identified in the Company's Annual Information Form, as of the date
of this Press Release, the Company has identified additional risks
associated with the COVID-19 global pandemic which are described
below.
Beginning in December 2019, a
new strain of the coronavirus (COVID-19) has spread rapidly through
the world including the United
States, Asia, Canada and Europe (where, collectively, fairly large
portions of the Company's operations and customers are located).
For the period ended March 31, 2020,
COVID-19 has not caused significant disruption in the Company's
business and operating results, however, for the remainder of 2020,
COVID-19 will likely continue to have negative material impacts on
the global economy which present significant additional risk
factors. For the Company, this outbreak might materially impact the
Company's ability to manufacture, source (including the delivery of
raw materials to its facilities) or distribute its products both
domestically and internationally; reduce its ability to effectively
market and sell its products; reduce demand for its products; cause
a significant decrease in the market price for petroleum-related
feedstocks which the Company's products are an alternative, and
cause increased credit risk. Any of these additional risks factors
could have a significant negative impact on the Company's financial
results in 2020 and beyond. Given the dynamic nature of this
outbreak, the extent to which the COVID-19 virus impacts the
Company's results will depend on future developments, which remain
highly uncertain and cannot be accurately predicted at this
time.
Should one or more of these risks or uncertainties
materialize, or should assumptions underlying the forward-looking
statements prove incorrect, actual results may vary materially from
those described in this Press Release as intended, planned,
anticipated, believed, estimated or expected. Unless required by
applicable securities law, we do not intend and do not assume any
obligation to update these forward-looking statements
SOURCE EcoSynthetix Inc.