Algoma Central Corporation Announces Completion of Substantial Issuer Bid
Dec 19, 2017
St. Catharines, Ontario, December 19, 2017 – Algoma Central Corporation (“Algoma”) (TSX:ALC), a leading provider of marine transportation services, today announced that it has taken up and paid for 361,418 common shares (the “Shares”) at a price of $14.75 per Share under Algoma’s substantial issuer bid (“SIB”) to purchase for cancellation a number of its shares for an aggregate purchase price not to exceed $20 million.
The Shares purchased under the SIB represent an aggregate purchase price of $5.3 million and represented 0.9% of the total number of Algoma’s issued and outstanding common shares as of December 15, 2017 (the expiry date of the SIB). After giving effect to the SIB, Algoma will have 38,552,315 common shares issued and outstanding.
Payment and settlement of the Shares will be effected by AST Trust Company (Canada) on or about December 22, 2017 in accordance with the settlement procedures described in the issuer bid circular.
The full details of the SIB are described in the offer to purchase and 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.
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. Forward looking statements, by their very nature, involve inherent risks and uncertainties and are based on several assumptions, both general and specific, including assumptions regarding the completeness and accuracy of information provided by the Depositary in respect of the SIB and Algoma’s share capital. 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.
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