Logistec Corporation

Logistec Corporation

October 15, 2010 11:05 ET

Logistec Corporation Renews its Normal Course Issuer Bid

MONTREAL, QUEBEC--(Marketwire - Oct. 15, 2010) - LOGISTEC CORPORATION ("Logistec")(TSX:LGT.A)(TSX:LGT.B) announced today that it is renewing its normal course issuer bid. Logistec believes that the repurchase of its shares makes appropriate and desirable use of its available cash. Therefore, Logistec believes that the offer is in the best interests of Logistec and its shareholders.

The Toronto Stock Exchange (the "Exchange") has accepted a notice filed by Logistec of its intention to make a normal course issuer bid. According to the notice, Logistec intends to repurchase, for cancellation purposes, in accordance with the requirements of the Exchange i) up to 188,615 Class A Common Shares ("Class A Shares"), representing 5% of the outstanding Class A Shares and ii) up to 139,147 Class B Subordinate Voting Shares ("Class B Shares"), representing 5% of the outstanding Class B Shares.

The average daily trading volume (the "ADTV") of Logistec's Class A Shares and Class B Shares over the last six completed calendar months was 39 and 322, respectively. Accordingly, under the Exchange Rules, Logistec is entitled on any trading day to repurchase up to 1,000 Class A Shares and Class B Shares. Once a week, in excess of the daily 1,000 repurchase limit, Logistec may also purchase a block of shares of any category not owned by an insider (i) having a purchase price of $200,000 or more, (ii) of at least 5,000 shares having a purchase price of at least $50,000, or (iii) of at least 20 board lots of shares which total 150% or more of the ADTV in accordance with Exchange rules. Logistec has retained BMO Nesbitt Burns Inc. as broker to manage the program.

Logistec has repurchased some of its shares within the past twelve (12) months pursuant to a normal course issuer bid which began on October 22, 2009 and will terminate no later than October 21, 2010. The purchases were executed through the facilities of the Exchange. 16,000 Class A Shares and 99,100 Class B Shares were purchased at a weighted average price of $16.45 and $15.75, respectively.

The normal course issuer bid will begin on October 22, 2010 and will terminate no later than October 21, 2011. All purchases will be made through the facilities of the Exchange at the discretion of Logistec's management, as and when it will deem the market price of the Class A Shares or of the Class B Shares to be favourable to the reduction of its outstanding share capital. The purchase of and payment for the shares will be made by Logistec in accordance with the requirements of the Exchange and the price Logistec will pay for any shares will be the market price of such shares at the time of acquisition. As of the close of business on October 12, 2010, there were 3,772,311 Class A Shares and 2,782,950 Class B Shares outstanding.

About Logistec

Logistec Corporation is based in Montréal (QC) and provides specialized services to the marine community and industrial companies in the areas of container, break-bulk and bulk cargo handling in 23 ports in Eastern Canada, the Great Lakes and the U.S. East Coast, including a short-line railway linked to a coal-handling operation in Cape Breton (NS). Logistec also offers marine transportation services geared primarily to the Arctic coastal trade; as well as agency services to foreign shipowners and operators serving the Canadian market. Furthermore, the Company operates in the environmental sector where it provides services for the trenchless structural rehabilitation of water mains, PCB management, site remediation, risk assessment, and woven-hose manufacturing. The Company has been profitable and has paid regular dividends since becoming public and payments have grown steadily over the years.

A public company since 1969, Logistec's shares are listed on the Toronto Stock Exchange under the ticker symbols LGT.A and LGT.B. More information can be obtained at the Company's website at www.logistec.com.

Contact Information

  • Logistec Corporation
    Jean-Claude Dugas CA
    Vice-President, Finance