OKOTOKS, AB, March 7, 2022 /CNW/ - (TSX: MTL) Mullen Group Ltd. ("Mullen Group" and/or the "Corporation") announced today that it has received approval from the Toronto Stock Exchange (the "Exchange") for the renewal of its normal course issuer bid (the "Bid").
For its normal course issuer bid that began on March 9, 2021 and that will expire on March 8, 2022, Mullen Group previously received approval from the Exchange to repurchase up to 7,928,623 common shares of the Corporation ("Shares"). Of this amount, the Corporation has already repurchased 4,160,956 Shares for a total cost of approximately $52.5 million, representing a volume weighted average price of $12.61 per Share.
Pursuant to the renewed Bid, the Corporation may repurchase from time to time up to a maximum of 8,828,623 Shares, which represents approximately 10% of the Corporation's Public Float (as that term is defined in the policies of the Exchange) between March 10, 2022 and March 9, 2023. Purchases may be made through the facilities of the Exchange or through alternative Canadian trading systems, if eligible. Any Shares purchased under the Bid will be cancelled. The price which the Corporation will pay for any such Shares will be the prevailing market price at the time of acquisition. The actual number of Shares which may be purchased pursuant to the Bid will be determined by management of the Corporation.
As of February 28, 2022, the Corporation has 93,876,859 Shares issued and outstanding. The average daily trading volume of the Shares on the Exchange ("ADTV") for the most recently completed six calendar months is 294,235. Pursuant to Exchange policies, the maximum number of Shares that may be purchased in one day pursuant to the Bid will be the greater of 1,000 and 25.0% of ADTV which amounts to 73,558 Shares, subject to certain prescribed exceptions.
The Corporation entered into an automatic securities purchase plan (the "ASPP") with its broker, Scotia Capital Inc., to allow for the repurchase of Shares at all times during the course of the Bid including when the Corporation ordinarily would not be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise. The ASPP is subject to a limitation that restricts the cumulative number of Share repurchases during the Bid to the lesser of 4.0 million Shares or $45.0 million. The ASPP was entered into and adopted in accordance with applicable Canadian securities laws. Subject to Exchange approval, the ASPP may be amended by the parties to increase the number of Shares that may be repurchased or the budget for the repurchases made under the ASPP. The funding for any purchase pursuant to the Bid will be financed out of the working capital of the Corporation.
The Board of Directors continues to believe that the underlying value of the Corporation may not be reflected in the current market price of its Shares. As a result, depending upon future price movements and other factors, the Board believes that the Shares may represent an attractive investment to the Corporation in the best interests of the Corporation and its shareholders. Furthermore, the purchases are expected to benefit all persons who continue to hold Shares by increasing their equity interest in the Corporation if the repurchased Shares are cancelled.
A copy of the Corporation's notice filed with the Exchange may be obtained, by any shareholder without charge, by contacting the Corporation's Corporate Secretary & Vice President, Corporate Services.
About Mullen Group Ltd.
Mullen Group is one of North America's largest logistics providers. Our network of independently operated businesses provide a wide range of service offerings including less-than-truckload, truckload, warehousing, logistics, transload, oversized, third-party logistics and specialized hauling transportation. In addition, we provide a diverse set of specialized services related to the energy, mining, forestry and construction industries in western Canada, including water management, fluid hauling and environmental reclamation. The corporate office provides the capital and financial expertise, legal support, technology and systems support, shared services and strategic planning to its independent businesses.
Mullen Group is a publicly traded corporation listed on the Toronto Stock Exchange under the symbol "MTL". Additional information is available on our website at www.mullen-group.com or on the Corporation's issuer profile on SEDAR at www.sedar.com.
Mr. Murray K. Mullen - Chair of the Board, Chief Executive Officer and President
Mr. Richard J. Maloney - Senior Vice President
Ms. Joanna K. Scott - Corporate Secretary & Vice President, Corporate Services
121A - 31 Southridge Drive
Okotoks, Alberta, Canada T1S 2N3
Certain statements included in this news release constitute "forward-looking statements" under Canadian securities laws, including statements relating to potential purchases of common shares for cancellation under a normal course issuer bid, the possibility of any amendment to the ASPP to increase the number of Shares that may be repurchased or the budget for the repurchases during the Bid, future benefits of holding common shares of the Corporation, and future benefits resulting from the purchase of common shares of the Corporation through the normal course issuer bid. By their nature, forward-looking statements involve risks, uncertainties and assumptions. The Corporation cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Forward-looking statements may be identified by the use of terminology such as "believes", "expects", "anticipates", "assumes", "outlook", "plans", "targets", or other similar words.
Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors which may cause the actual results or performance of the Corporation to be materially different from the outlook or any future results or performance implied by such statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements. Important risk factors that could affect the forward-looking statements include, but are not limited to, the effects of general economic and business conditions; industry competition; inflation, currency and interest rate fluctuations; changes in fuel prices; legislative and/or regulatory developments; compliance with environmental laws and regulations; actions by regulators; increases in maintenance and operating costs; security threats; reliance on technology and related cybersecurity risk; trade restrictions or other changes to international trade arrangements; transportation of hazardous materials; various events which could disrupt operations, including natural events such as severe weather, droughts, fires, floods and earthquakes; climate change; labor negotiations and disruptions; environmental claims; uncertainties of investigations, proceedings or other types of claims and litigation; timing and completion of capital programs; and other risks detailed from time to time in reports filed by Mullen Group with securities regulators in Canada. Reference should be made to Mullen Group's Management's Discussion and Analysis and Annual Information Form both of which are dated February 9, 2022 and can be found under the Corporation's issuer profile on SEDAR (www.sedar.com) and on Mullen Group's website (www.mullen-group.com), for a description of major risk factors.
Forward-looking statements reflect information as of the date on which they are made. Mullen Group assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable securities laws. In the event Mullen Group does update any forward-looking statement, no inference should be made that Mullen Group will make additional updates with respect to that statement, related matters, or any other forward-looking statement.
SOURCE Mullen Group Ltd.