LONGUEUIL, QC, Aug. 8, 2023
/CNW/ - Héroux-Devtek Inc. (TSX: HRX) ("Héroux-Devtek" or
the "Corporation"), a leading
international manufacturer of aerospace products
and the world's third-largest landing gear manufacturer, today
announced that the Toronto Stock Exchange ("TSX") has approved
Héroux‑Devtek's normal course issuer bid ("NCIB"). Under the NCIB,
Héroux-Devtek has the right to purchase for cancellation, from
August 10, 2023 to August 9, 2024, a maximum of 1,791,984 common
shares, representing, as of August 2,
2023, 10% of the public float of 17,919,842 common shares.
The Corporation had 34,005,873 common shares issued and outstanding
as of August 2, 2023.
Under its prior bid (the "2022 NCIB"), the Corporation received
the approval of the TSX to repurchase for cancellation up to
1,896,079 common shares. Under the 2022 NCIB, the Corporation
repurchased a total of 583,903 common shares, by means of open
market transactions through the facilities of the TSX, other
designated exchanges and/or alternative Canadian trading systems,
at a volume weighted average price of $13.44 per common
share.
Any purchases of shares by Héroux-Devtek under the NCIB will be
effected through the facilities of TSX as well as on other
designated exchanges and/or alternative Canadian trading systems,
at prevailing market prices, and any common shares so purchased by
the Corporation will be cancelled. The actual number of shares that
may be purchased and the timing of any such purchases will be
determined by Héroux-Devtek. Any purchases made by Héroux‑Devtek
pursuant to the NCIB will be made in accordance with the rules and
policies of the TSX.
Héroux-Devtek believes that the NCIB is a flexible means to
optimize the capital allocation of the Corporation and provide
immediate value for shareholders while not compromising the
Corporation's position for future growth initiatives.
During the most recently completed six months, the average daily
trading volume for the common shares of Héroux-Devtek on the TSX
was 24,639 common shares. Consequently, under the policies of the
TSX, Héroux-Devtek will have the right to repurchase under its
NCIB, during any trading day, a maximum of 6,159 common shares,
representing 25% of the average daily trading volume. In addition,
the Corporation will be allowed to make, once per calendar week, a
block purchase (as such term is defined in the TSX Company Manual)
of shares not directly or indirectly owned by insiders of
Héroux-Devtek, in accordance with the TSX policies. Héroux-Devtek
will fund the purchases through available cash.
In connection with the NCIB, Héroux-Devtek has entered into an
automatic share purchase plan ("ASPP") to facilitate purchases at
times when the Corporation would not normally be active in the
market due to regulatory restrictions or self-imposed trading
blackouts.
FORWARD-LOOKING
STATEMENTS
Except for historical information provided herein, this press
release contains information and statements of a forward-looking
nature concerning the potential future purchases by the Corporation
of its common shares.
Forward-looking statements are based on assumptions and
uncertainties as well as on management's best possible evaluation
of future events. These statements are no guarantees of future
performance or events and readers are cautioned not to place undue
reliance on such forward-looking statements. There can be no
assurance that the Corporation will repurchase all or any of its
common shares subject to the NCIB.
As a result, readers are advised that actual results may differ
from expected results. Please see the Risk and Uncertainties
section under Additional Information in the Corporation's MD&A
for the fiscal year ended March 31, 2023, for further details
regarding the material assumptions. The forward-looking statements
set forth herein reflects the Corporation expectations as at the
date of this press release and is subject to change after such
date. Héroux-Devtek disclaims any intention or obligation to update
or revise any forward-looking statements other than as required by
law.
ABOUT HÉROUX-DEVTEK
Héroux-Devtek Inc. (TSX: HRX) is an international company specializing in the design,
development, manufacture, repair and overhaul of aircraft
landing gear, hydraulic and electromechanical actuators, custom
ball screws and fracture-critical components for the Aerospace
market. The Corporation is the third-largest landing gear company
worldwide, supplying both the defence and commercial sectors.
Approximately 94% of the Corporation's sales are outside of
Canada, including about 61% in
the United States. The
Corporation's head office is located in Longueuil, Québec with facilities in
Canada, the United States, the United Kingdom and Spain.
SOURCE Héroux-Devtek Inc.