BURLINGTON, ON, May 10, 2023
/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, on the open market through the facilities of the
Toronto Stock Exchange ("TSX"), other designated exchanges and/or
alternative Canadian trading systems or by such other means as may
be permitted by applicable Canadian securities laws, certain of its
outstanding common shares ("Shares").
The number of Shares to be purchased during the period of the
Bid from May 15, 2023 to May 14, 2024 will not exceed
3,867,436 Shares, being approximately 10% of the outstanding
Shares as of May 1, 2023, other than
the Shares held by directors, senior officers and principal
security holders (the "Public Float"). 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 1, 2023 there
were 59,224,759 Shares issued and outstanding and the Public Float
consisted of 38,674,369 Shares. The average daily trading volume of
the Shares on the TSX (the "ADTV") for the most recently completed
six month period was 31,417 Shares. Pursuant to the terms of the
Bid, EcoSynthetix will not acquire on any given trading day more
than 25% of the ADTV for the most recently completed six-month
period, being 7,854 Shares, other than block purchase exceptions.
All purchases made pursuant to the Bid will be made on the open
market through the facilities of the TSX, other designated
exchanges and/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 price that the Company will pay for Shares
in open market transactions will be the market price at the time of
purchase.
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 Shares of EcoSynthetix from time to time
and that the Shares may trade in a price range which may not
adequately reflect the value of the 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 3,851,946 Shares,
467,200 Shares were purchased for the period from May 13, 2022 to May 1,
2023. 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 $4.02 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 15, 2023.
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™, Surflock™, Bioform™ and
EcoSphere®, are used to manufacture wood composites, personal care,
paper, tissue and packaging products, and enable performance
improvements, economic benefits and carbon footprint reduction. 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, the price to be paid by the Company for any Shares purchased
under the Bid, if any, and the timing of any such purchases. 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 February 28,
2023. 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.
