LONGUEUIL, QC, May 20, 2021 /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 May 25, 2021 to May 24, 2022, a maximum of 2,412,279 common shares, representing, as of May 12, 2021, 10% of the public float of 24,122,794 common shares. The Corporation had 36,796,469 common shares issued and outstanding as of May 12, 2021.
Any purchases of shares by Héroux-Devtek under the NCIB will be effected through the facilities of TSX as well as on Canadian alternative trading systems, at prevailing market prices and any common shares purchased by the Company 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.
"We believe that the NCIB is a flexible means to optimize our capital allocation and provide immediate value for shareholders while not compromising our position for future growth initiatives," said Mr. Martin Brassard, President and Chief Executive Officer of Héroux-Devtek.
During the most recently completed six months, the average daily trading volume for the common shares of Héroux-Devtek on the TSX was 50,071 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 12,517 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. The Corporation has not repurchased any shares in the last 12 months.
Desjardins Capital Markets ("Desjardins") has been appointed by the Corporation to make the purchases under the NCIB.
In connection with the NCIB, Héroux-Devtek has entered into an automatic share purchase plan ("ASPP") with Desjardins 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 Management section in the Additional Information tab in the Corporation's MD&A for the year ended March 31, 2021 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 commercial and defence sectors. Approximately 90% of the Corporation's sales are outside of Canada, including about 53% 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.
Héroux-Devtek Inc., Stéphane Arsenault, Vice President and Chief Financial Officer, Tel.: 450-679-3330, [email protected]; Investor Relations, Hugo Delorme, Tel.: 514-700-5550, ext. 555, [email protected]
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