Stella-Jones Announces Normal Course Issuer Bid

MONTREAL, Aug. 05, 2020 (GLOBE NEWSWIRE) -- Stella-Jones Inc. (TSX: SJ) (“Stella-Jones” or the “Company”) announced today that the Toronto Stock Exchange (“TSX”) has accepted its Notice of Intention to Make a Normal Course Issuer Bid (the “Notice”). Pursuant to the Notice, Stella-Jones may, during the 12-month period commencing August 10, 2020 and ending August 9, 2021, purchase for cancellation, up to 2,500,000 Common Shares, representing approximately 3.7% of its outstanding Common Shares. As at July 31, 2020, Stella-Jones had 67,488,235 Common Shares issued and outstanding. Within the last twelve months, the Company has purchased 1,690,283 Common Shares through the facilities of the TSX at a weighted average price of $38.40 per Common Share, for a total consideration of $64,899,455.

The Notice provides that purchases under the Normal Course Issuer Bid will be effected on the open market through the facilities of the TSX. The average daily trading volume (the “ADTV”) of the Common Shares on the TSX for the six month period ended July 31, 2020 was 204,696 Common Shares and, therefore, in accordance with the requirements of the TSX, the daily purchase limit under the NCIB on the TSX will be 51,174 Common Shares, representing 25% of the ADTV, subject to certain prescribed exceptions. The price that Stella-Jones will pay for any Common Shares acquired by Stella-Jones under the Normal Course Issuer Bid will be the market price of the Common Shares at the time of acquisition. Purchases will be made at management’s discretion. Additionally, Stella-Jones has implemented an automatic share purchase plan with its designated broker in connection with the Normal Course Issuer Bid in order to allow, if deemed advisable by Stella-Jones, for share purchases during self-imposed blackout periods.

The Board of Directors of Stella-Jones believes that the repurchase of Common Shares, which Stella-Jones may carry out from time to time, represents an attractive and responsible investment of funds on hand and is in the best interests of Stella-Jones.

ABOUT STELLA-JONES

Stella-Jones Inc. (TSX: SJ) is a leading producer and marketer of pressure treated wood products. The Company supplies North America’s electrical utilities and telecommunication companies with utility poles and the continent’s railroad operators with railway ties and timbers. Stella-Jones also manufactures and distributes residential lumber and accessories to retailers for outdoor applications, as well as industrial products for construction and marine applications. The Company’s common shares are listed on the Toronto Stock Exchange.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, general economic and business conditions (including the impact of the global outbreak of the coronavirus pandemic), evolution in customer demand for the Company's products and services, product selling prices, availability and cost of raw materials, changes in foreign currency rates, and the ability of the Company to raise capital. As a result, readers are advised that actual results may differ from expected results. Unless required to do so under applicable securities legislation, the Company does not assume any obligation to update or revise forward-looking statements to reflect new information, future events or other changes after the date hereof.