Methanex Announces TSX Approval of a 5% Share Repurchase Program
VANCOUVER, British Columbia, Sept. 21, 2022 (GLOBE NEWSWIRE) -- Methanex Corporation (the “Company” or “Methanex”) (TSX:MX) (NASDAQ:MEOH) announced today that the Toronto Stock Exchange (the “TSX”) has approved the Company’s previously announced Normal Course Issuer Bid (“NCIB”).
Pursuant to the NCIB, the Company will purchase for cancellation up to 3,506,405 common shares ("Shares"), representing 5% of the 70,128,109 Shares issued and outstanding as of September 15, 2022. Purchases will be made on the open market through the facilities of the TSX and will commence on September 26, 2022 and end no later than September 25, 2023. Any purchases will be made from time to time at the then current market price of the Shares and all Shares purchased under the NCIB will be cancelled. Subject to certain exceptions for block purchases, any daily purchases under the NCIB through the TSX will not exceed 54,902 Shares, representing 25% of the Company’s average daily trading volume on the TSX for the six month period ended on August 31, 2022. The Company intends to enter into an automatic securities purchase plan with its broker in connection with purchases to be made under the NCIB.
John Floren, President and CEO of Methanex, commented, “Today’s announcement reflects the strength of our balance sheet and builds on our long track record of returning excess cash to shareholders.”
Under the NCIB initiated by the Company on September 24, 2021, which completed on July 26, 2022, the Company repurchased for cancellation 3,810,464 Shares through the facilities of the NASDAQ Global Select Market and alternative trading systems in the United States at a volume weighted average price of US$47.83, and 2,283,707 Shares through the facilities of the TSX at a volume weighted average price of CAD$56.14.
Methanex is a Vancouver-based, publicly traded company and is the world's largest producer and supplier of methanol to major international markets. Methanex shares are listed for trading on the Toronto Stock Exchange in Canada under the trading symbol "MX" and on the NASDAQ Global Select Market in the United States under the trading symbol "MEOH". Methanex can be visited online at www.methanex.com.
FORWARD-LOOKING INFORMATION WARNING
This press release contains certain forward-looking statements with respect to us and our industry. These statements relate to future events or our future performance. All statements other than statements of historical fact are forward-looking statements. Statements that include the word "will" or other comparable terminology and similar statements of a future or forward-looking nature identify forward-looking statements. More particularly and without limitation, any statements regarding the following are forward-looking statements:
- Methanex’s expected cash flows, cash balances, earnings capability, debt levels and share price,
- Methanex’s financial strength and ability to meet future financial commitments, and
- Methanex's shareholder distribution strategy and expected distributions to shareholders.
We believe that we have a reasonable basis for making such forward-looking statements. The forward-looking statements in this document are based on our experience, our perception of trends, current conditions and expected future developments as well as other factors. Certain material factors or assumptions were applied in drawing the conclusions or making the forecasts or projections that are included in these forward-looking statements, including, without limitation, future expectations and assumptions concerning the following:
- the supply of, demand for, and price of methanol, methanol derivatives, natural gas, coal, oil and oil derivatives,
- operating rates of our facilities,
- operating costs including natural gas feedstock and logistics costs, capital costs, tax rates, cash flows, foreign exchange rates and interest rates,
- the expected timing and capital cost of our Geismar 3 Project, and
- global and regional economic activity (including industrial production levels) and GDP growth.
However, forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. The risks and uncertainties primarily include those attendant with producing and marketing methanol and successfully carrying out major capital expenditure projects in various jurisdictions, including without limitation:
- conditions in the methanol and other industries including fluctuations in the supply, demand for and price of methanol and its derivatives, including demand for methanol for energy uses,
- the price of natural gas, coal, oil and oil derivatives,
- our ability to obtain natural gas feedstock on commercially acceptable terms to underpin current operations and future growth opportunities,
- the ability to successfully carry out corporate initiatives and strategies,
- actions of competitors, suppliers and financial institutions,
- world-wide economic conditions, and
- other risks described in our 2021 Annual Management's Discussion and Analysis and our Second Quarter 2022 Management's Discussion and Analysis.
Having in mind these and other factors, investors and other readers are cautioned not to place undue reliance on forward-looking statements. They are not a substitute for the exercise of one's own due diligence and judgment. The outcomes anticipated in forward-looking statements may not occur and we do not undertake to update forward-looking statements except as required by applicable securities laws.
For further information, contact:
Director, Investor Relations
604 661-2600 or Toll Free: 1 800 661 8851