MONTREAL, QUEBEC--(Marketwired - Oct. 21, 2013) - LOGISTEC CORPORATION ("Logistec") (TSX:LGT.A)(TSX:LGT.B) announced today that it is renewing its normal course issuer bid ("NCIB"). Logistec believes that the repurchase of its shares may constitute an appropriate and desirable use of its available cash. Therefore, Logistec believes that the offer is in the best interest of Logistec and its shareholders.
The Toronto Stock Exchange (the "Exchange") has accepted a notice filed by Logistec of its intention to make a NCIB. According to the notice, Logistec intends to repurchase, for cancellation purposes, in accordance with the requirements of the Exchange i) up to 187,235 Class A Common Shares ("Class A Shares"), representing 5% of the outstanding Class A Shares and ii) up to 134,632 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 76 and 679, respectively. Accordingly, under the Exchange Rules, Logistec is entitled on any trading day to repurchase up to 1,000 Class A Shares and 1,000 Class B Shares. Once a week, in excess of the daily 1,000 purchase limit, Logistec may also repurchase 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 NCIB which began on October 24, 2012 and will terminate no later than October 23, 2013. The purchases were executed through the facilities of the Exchange. During this period, a total of 8,600 Class A Shares and 51,100 Class B Shares were repurchased at a weighted average price of $32.00 and $28.73, respectively.
The new NCIB will begin on October 24, 2013 and will terminate no later than October 23, 2014. All purchases will be made through the facilities of the Exchange or other Canadian marketplaces through an automatic securities plan Logistec entered into with its broker, which will allow the latter to purchase shares for Logistec at all times, including during blackout periods. 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 18, 2013, there were 3,744,711 Class A Shares and 2,692,650 Class B Shares issued and outstanding.
Logistec Corporation is based in Montréal (QC) and provides specialized services to the marine community and industrial companies in the areas of bulk, break-bulk and container cargo handling in 24 ports in Eastern Canada, the Great Lakes and the U.S. East Coast. Logistec also offers marine transportation services geared primarily to the Arctic coastal trade, short-line rail transportation services, as well as marine agency services to foreign shipowners and operators serving the Canadian market. Furthermore, the Company operates in the environmental sector where it provides services to industrial, municipal, and other governmental customers for the trenchless structural rehabilitation of underground 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.