TORONTO, Aug. 13,
2024 /CNW/ - Russel Metals Inc. (TSX: RUS) announces
that it has received approval from the Toronto Stock Exchange (the
"TSX") of its notice of intention to make a normal course issuer
bid (the "NCIB").
Under the NCIB, Russel Metals may purchase for cancellation, on
the open market at its discretion, during the period commencing on
August 16, 2024 and ending on the
earlier of August 15, 2025 and the
completion of purchases under the NCIB, up to 5,808,254 common
shares of Russel Metals ("Common Shares"), which represents 10% of
the public float over a 12-month period. As of August 13, 2024, Russel Metals had 58,632,841
Common Shares issued and outstanding.
Daily purchases on the TSX under the NCIB will be limited to
44,117 Common Shares, which represents 25% of the average daily
trading volume of 176,468 on the TSX for six months ending
July 31, 2024, subject to any
purchases made pursuant to the block purchase exception. The
actual number of Common Shares which may be purchased under the
NCIB and the timing of any such purchases will be determined by
Russel Metals in its discretion, subject to applicable laws and the
rules of the TSX. Purchases under the NCIB are expected to be made
through the facilities of the TSX and alternative trading systems
in Canada at prevailing market
prices. The NCIB will be funded using Russel Metals' existing
cash resources or credit facilities, and any Common Shares
repurchased by Russel Metals under the NCIB will be cancelled.
The renewal of the NCIB follows the conclusion of
the Company's previous NCIB that expires on August 15, 2024. Under the previous NCIB
Russel Metals was authorized to purchase 6,076,625 common shares of
which 2,925,200 common shares were purchased as of August 12, 2024, through the facilities of the
TSX and alternative trading systems in Canada, at a weighted average price of
$39.60 per share.
Russel Metals believes that the NCIB will provide a flexible
tool as part of its capital allocation program, while generating
value for shareholders. Decisions regarding any future repurchases
will depend on certain factors, such as market conditions, share
price and other opportunities to invest capital for growth. Russel
Metals may elect to suspend or discontinue share repurchases at any
time, in accordance with applicable laws.
About Russel Metals
Russel Metals is one of the largest metals distribution
companies in North America with a
growing focus on value-added processing. It carries on
business in three segments: metals service centers, energy field
stores and steel distributors. Its network of metals service
centers carries an extensive line of metal products in a wide range
of sizes, shapes and specifications, including carbon hot rolled
and cold finished steel, pipe and tubular products, stainless
steel, aluminum and other non-ferrous specialty metals. Its
energy field stores carry a specialized product line focused on the
needs of energy industry customers. Its steel distributors
operations act as master distributors selling steel in large
volumes to other steel service centers and large equipment
manufacturers mainly on an "as is" basis.
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Releases, you may do so by emailing subscriber@russelmetals.com; or
by calling our Investor Relations Line: 905-816-5178.
Cautionary Statement on Forward
Looking Information
Certain statements contained in this press release constitute
forward-looking statements or information within the meaning of
applicable securities laws relating to, among other things, the
anticipated benefits of the financing. Forward-looking statements
are often, but not always, identified by the use of words such as
"expect", "may", "will", "could", "might", "should", "believe" and
similar expressions. Forward-looking statements are necessarily
based on estimates and assumptions that, while considered
reasonable by us, inherently involve known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking statements. In particular, such forward-looking
statements include, but are not limited to, statements relating to
Russel Metals' intention to commence the NCIB and the timing,
methods and quantity of any purchases of Common Shares under the
NCIB, the availability of cash for repurchases of Common Shares
under the NCIB, compliance with applicable laws and regulations
pertaining to the NCIB, Russel Metals' perceptions of historical
trends, current conditions and expected future developments, as
well as other considerations that are believed to be appropriate in
the circumstances.
While we believe that the expectations reflected in our
forward-looking statements are reasonable, no assurance can be
given that these expectations will prove to be correct, and our
forward-looking statements included in this press release should
not be unduly relied upon. These statements speak only as of the
date of this press release and, except as required by law, we do
not assume any obligation to update our forward-looking
statements.
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SOURCE Russel Metals Inc.