MISSISSAUGA, ON, June 20, 2022 /CNW/ - Cargojet Inc. ("Cargojet" or the "Corporation") (TSX: CJT) today announced that it received approval from the Toronto Stock Exchange ("TSX") to amend its previously-announced normal course issuer bid ("NCIB") in order to increase the maximum number of common voting shares and variable voting shares (together, the "Shares") that may be repurchased from 155,000 Shares, or 0.92% of the public float as at April 28, 2022 (the reference date for the NCIB), to 1,500,000 Shares, or 8.91% of the public float as at such date.
Cargojet's Board of Directors believes that, from time to time during the course of the NCIB, the market price of the Shares may not fully reflect the underlying value of the Shares and purchases of Shares pursuant to the NCIB may be a desirable use of funds that will create value for shareholders. Cargojet has a leading position in both its domestic and international business that mitigates risks associated to capacity, pricing to customers and capital expenditures, and allows it to continue to pursue its growth strategies.
Any purchases made under the NCIB, which began on May 4, 2022 and will end no later than May 3, 2023, are made by Cargojet subject to favourable market conditions at the prevailing market price at the time of acquisition through the facilities of the TSX and/or alternative Canadian trading systems.
As at April 28, 2022, there were 17,324,258 Shares outstanding. Under the NCIB, other than purchases made under block purchase exemptions, Cargojet may purchase up to 19,583 Shares on the TSX during any trading day, which represents approximately 25% of the average daily trading volume, as calculated in accordance with TSX rules. Any Shares purchased under the NCIB are cancelled.
The automatic share purchase plan ("ASPP") entered into with a designated broker on May 2, 2022 remains unchanged. The ASPP allows for the purchase of Shares under the NCIB at times when the Corporation ordinarily would not be active in the market due to self-imposed trading blackout periods. Outside of these pre-determined blackout periods, Shares are purchased in accordance with management's discretion
Cargojet is Canada's leading provider of time sensitive premium air cargo services to all major cities across North America, providing dedicated, ACMI and international charter services and carries over 25,000,000 pounds of cargo weekly. Cargojet operates its network with its own fleet of 31 cargo aircraft.
Notice on Forward Looking Statement
Certain statements contained herein constitute "forward-looking statements", including with respect to the Corporation's intention to purchase Shares under the NCIB and ASPP as described above, the timing and benefits of such purchases, and the increase to the Corporation's quarterly dividend. Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans," "intends," "anticipates," "should," "estimates," "expects," "believes," "indicates," "targeting," "suggests" and similar expressions. These forward-looking statements are based on current expectations and entail various risks and uncertainties. Reference should be made to the Corporation's most recent Annual Information Form filed with the Canadian securities regulators, and it's most recent Consolidated Financial Statements and Notes thereto and related Management's Discussion and Analysis (MD&A), for a summary of major risks. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. The forward-looking statements contained or incorporated by reference in this news release represent Cargojet's expectations as of the date of this news release (or as of the date they are otherwise stated to be made) and are subject to change after such date. However, Cargojet disclaims any intention or obligation to update or revise any forward-looking statements whether because of new information, future events or otherwise, except as required under applicable securities laws. In the event Cargojet does update any forward-looking statement, no inference should be made that Cargojet will make additional updates with respect to that statement, related matters, or any other forward-looking statement.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this statement.
SOURCE Cargojet Inc.
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