BURLINGTON, ON, Nov. 19, 2014 /CNW/ - EcoSynthetix Inc. (TSX:ECO) ("EcoSynthetix" or the "Company") announced today that it intends to make a normal course issuer bid (the "Bid") to repurchase, through the facilities of the Toronto Stock Exchange ("TSX") certain of its outstanding common shares ("Shares").
The number of Shares to be purchased during the period of the Bid from November 21, 2014 to November 20, 2015 will not exceed 2,714,106 Shares being approximately 5% of the outstanding shares as of November 17, 2014. The actual number of Shares which may be purchased pursuant to the Bid and the timing of any such purchases will be determined by the management of EcoSynthetix. As at November 17, 2014 there were 54,282,134 Shares issued and outstanding. Pursuant to the terms of the Bid, EcoSynthetix will not acquire on any given trading day more than 25% of the average daily trading volume of Shares for the most recently completed six month period, being 13,246 Shares, other than block purchase exceptions. All purchases made pursuant to the Bid will be made through the facilities of the TSX or other Canadian market places and EcoSynthetix will cancel any such Shares purchased pursuant to the Bid.
The Bid has been authorized by the board of directors of EcoSynthetix to allow EcoSynthetix to purchase Shares if in the opinion of management the purchases can be made on terms which will enhance the value of the remaining outstanding Shares.
EcoSynthetix is undertaking the Bid because it believes that the market may undervalue the common shares of EcoSynthetix from time to time and that the common shares may trade in a price range which may not adequately reflect the value of such shares in relation to the business, assets and future prospects of EcoSynthetix from time to time.
Pursuant to the previous normal course issuer bid undertaken by the Company, an aggregate of 406,840 Shares were purchased for the period from November 13, 2013 to November 12, 2014 at an average weighted price of $2.04 per Share.
About EcoSynthetix Inc. (www.ecosynthetix.com)
EcoSynthetix Inc. is a renewable chemicals company specializing in bio-based products that can be used as inputs in industrial manufacturing for a wide range of consumer products. The Company's products offer a reduced carbon footprint and are marketed primarily on the basis of lower cost, stable pricing and equal or superior performance. EcoSynthetix's lead product, EcoSphere® biolatex® binders, is used commercially by a number of the global top 20 manufacturers in the coated paper and paperboard industry.
Forward Looking Statements
Certain statements in this Press Release constitute "forward looking" statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, objectives or achievements of the Company, or industry results, to be materially different from any future results, performance, objectives or achievements expressed or implied by such forward looking statements. These statements reflect our current views regarding future events and operating performance and are based on information currently available to us, and speak only as of the date of this Press Release. These forward looking statements involve a number of risks, uncertainties and assumptions and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such performance or results will be achieved. Those assumptions and risks include, but are not limited to, the fact that our results of operations and business outlook are subject to significant risk, volatility and uncertainty. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward looking statements, including the factors identified in the "Risk Factors" section of the Company's Annual Information Form dated March 28, 2013. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described in this Press Release as intended, planned, anticipated, believed, estimated or expected. Unless required by applicable securities law, we do not intend and do not assume any obligation to update these forward looking statements.
SOURCE: EcoSynthetix Inc.
For further information: EcoSynthetix Inc., Steve Snyder, Phone: (289) 245-4017, E-mail: [email protected]; Investor Relations, Ross Marshall, TMX Equicom, Phone: (416) 815-0700 (Ext.238), E-mail: [email protected]