CAMBRIDGE, ON, Dec. 3, 2018 /CNW/ - ATS Automation Tooling Systems Inc. (TSX: ATA) ("ATS" or the "Company") today announced that the Toronto Stock Exchange ("TSX") has accepted a notice filed by it of its intention to make a normal course issuer bid ("NCIB"). Under the NCIB, ATS will have the ability to purchase for cancellation up to a maximum of 3,000,000 common shares, representing approximately 3.2% of the 94,139,097 common shares that were issued and outstanding as of November 16, 2018.
Purchases under the NCIB will be made through the facilities of the TSX and/or alternative Canadian trading systems in accordance with applicable regulatory requirements, during the twelve month period commencing on December 5, 2018 and ending on or before December 4, 2019. The average daily trading volume of the common shares on the TSX for the six calendar months ending October 31, 2018 is 240,474 common shares. On any trading day ATS will not purchase more than 25% of such average daily trading volume, representing 60,118 common shares, except where such purchases are made in accordance with available block purchase exemptions. The common shares purchased under this NCIB will be cancelled.
Some purchases under the NCIB may be made pursuant to an automatic purchase plan between ATS and its broker, which is expected to be established on or about December 7, 2018. This plan would enable the purchase of ATS common shares when ATS would not ordinarily be active in the market due to internal trading blackout periods, insider trading rules, or otherwise.
ATS believes that there are times when the market price of ATS common shares may not reflect their underlying value and that the purchase of shares by ATS will both provide liquidity to existing shareholders and benefit remaining shareholders. The NCIB is viewed by ATS management as one component of an overall capital structure strategy and complimentary to its acquisition growth plans.
About ATS ATS is an industry-leading automation solutions provider to many of the world's most successful companies. ATS uses its extensive knowledge base and global capabilities in custom automation, repeat automation, automation products and value-added services, including pre-automation and after-sales services, to address the sophisticated manufacturing automation systems and service needs of multinational customers in markets such as life sciences, chemicals, consumer products, electronics, food, beverage, transportation, energy, and oil and gas. Founded in 1978, ATS employs approximately 3,900 people at 21 manufacturing facilities and over 50 offices in North America, Europe, Southeast Asia and China. The Company's shares are traded on the Toronto Stock Exchange under the symbol ATA. Visit the Company's website at www.atsautomation.com.
SOURCE ATS Automation Tooling Systems Inc.
For further information: Sonya Mehan, Director, Investor Relations and Corporate Communications, 519 653-6500