Algoma Central Corporation Announces Preliminary Results of Substantial Issuer Bid
Dec 18, 2017
St. Catharines, Ontario (December 18, 2017) – Algoma Central Corporation (“Algoma” or the “Company”) (TSX:ALC) a leading provider of marine transportation services today announced the preliminary results of its “modified Dutch auction” substantial issuer bid (SIB). Under the SIB, Algoma offered to purchase for cancellation up to $20 million of its common shares (the “Shares”) from Shareholders for cash. The SIB expired at 11:59 p.m. (Toronto time) on December 15, 2017.
Based on the preliminary count by AST Trust Company (Canada), as depositary for the SIB, Algoma expects to take up and pay for approximately 361,418 Shares at a price of $14.75 per Share under the SIB, representing an aggregate purchase price of $5.3 million and 0.9% of the total number of Algoma’s issued and outstanding Shares before giving effect to the SIB.
The full details of the SIB are described in the issuer bid circular dated November 10, 2017, as well as the related letter of transmittal and notice of guaranteed delivery, copies of which were filed and are available on SEDAR at www.sedar.com.
As the total number of Shares tendered was substantially less than the total that could have been acquired by the Company under the terms of the SIB, all Shares validly deposited and not withdrawn prior to the expiry of the SIB will be acquired at the maximum purchase price offered under the SIB and no pro-ration will be required.
After giving effect to the SIB, Algoma expects to have 38,552,315 Shares issued and outstanding.
“We are satisfied with the response to the offer. The majority of our shareholders have chosen to retain their common shares, indicating to us that they see further growth potential for their investment in the Company,” said Ken Bloch Soerensen, President and CEO of Algoma. “We will continue to review options to enhance the value of the Company’s common shares”, Mr. Soerensen added.
The number of Shares to be purchased and the purchase price under the SIB are preliminary. Final results will be determined subject to confirmation by the depositary of the proper delivery of the Shares validly tendered and not withdrawn. Upon take up and payment of the Shares purchased, Algoma will release the final results.
This press release is for informational purposes only and does not constitute an offer to buy or the solicitation of an offer to sell Algoma’s Shares.
About Algoma Central
Algoma Central Corporation is a publicly traded company which operates the largest Canadian flag fleet of dry and liquid bulk carriers on the Great Lakes - St. Lawrence Waterway, including self-unloading dry-bulk carriers, gearless dry bulk carriers and product tankers. Algoma also owns ocean self-unloading dry-bulk vessels operating in international markets. Algoma has begun an expansion into international short-sea markets through it 50% interests in NovaAlgoma Cement Carriers and NovaAlgoma Short-Sea Carriers. Algoma Central trades on the Toronto Stock Exchange under the symbol “ALC”. For more information, please visit www.algonet.com.
Certain information included in this press release is forward-looking, within the meaning of applicable securities laws. Much of this information can be identified by looking for words such as “believe”, “expects”, “expected”, “will”, “intends”, “projects”, “anticipates”, “estimates”, “continues” or similar words. In particular, this press release includes forward-looking statements pertaining to the terms and conditions of the SIB, including the aggregate amount of Shares to be purchased for cancellation under the SIB, the final purchase price and the approximate number of Shares expected to be issued and outstanding after completion of the SIB. Algoma believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.
Forward-looking statements are based on current information and expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. Forward-looking statements contained in this press release are made as of the date hereof and are subject to change. Algoma assumes no obligation to revise or update forward looking statements to reflect new circumstances, except as required by law.
For Further Information Please Contact:
Ken Bloch Soerensen
Peter D. Winkley, CPA, CA