CALGARY, May 2, 2019 /CNW/ - Tervita Corporation ("Tervita" or the "Corporation") (TSX: TEV) announced today that a Notice of Intention to commence its Normal Course Issuer Bid (the "NCIB") has been approved by its board of directors and has been filed with and accepted by the Toronto Stock Exchange (the "TSX"). Given the positive outlook for our business, we believe Tervita's shares are undervalued and as such we are initiating a normal course issuer bid to purchase them as appropriate. Tervita's balance sheet priorities are unchanged. We continue to invest capital in attractive growth opportunities, spend within internally generated cash flows, and our deleveraging plans remain intact.
Pursuant to the NCIB, Tervita is authorized to repurchase common shares in the capital of Tervita ("Common Shares") having an aggregate purchase price of up to $20 million, which equates to 3,115,264 Common Shares at today's trading prices, representing 2.68% of Tervita's 117,557,112 Common Shares outstanding as at April 30, 2019. The average daily trading volume of the Corporation's Common Shares from November 1, 2018 to April 30, 2019 was 125,992 Common Shares ("ADTV"). Accordingly, pursuant to the rules of the TSX, the maximum number of Common Shares that the Corporation may repurchase in any one day is 25% of the ADTV, which totals 31,498 Common Shares. Tervita may also make one block purchase per calendar week which exceeds the daily repurchase restriction.
The NCIB will commence on May 7, 2019 and will terminate on the earlier of: (i) May 6, 2020; and (ii) the date on which the maximum number of Common Shares are purchased pursuant to the NCIB. Purchases of Common Shares under the NCIB will be effected through the facilities of the TSX, other alternative trading platforms, at the market price at the time of purchase. Common Shares purchased pursuant to the NCIB will thereafter be cancelled.
Tervita is a leading waste management and environmental solutions provider offering waste processing, treating, recycling, and disposal services to customers in the oil and gas, mining, and industrial sectors. We serve our customers onsite and through a network of facilities in Canada and the United States.
For 40 years, Tervita has been focused on delivering safe and efficient solutions through all phases of a project while minimizing impact, maximizing returns™. Our dedicated and experienced employees are trusted sustainability partners to our clients. Safety is our top priority: it influences our actions and shapes our culture. Tervita trades on the TSX as TEV. For more information, visit tervita.com.
This news release contains certain statements that may be "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws. Forward looking statements are statements that are not historical facts and are often, but not always, identified using words or phrases such as "expects", "plans", "anticipates", "believes", "intends", "estimates", "estimated", "projects", "potential" and similar expressions, or stating that certain actions, events or conditions "will", "would", "may", "might", "could" or "should" occur or be achieved or other similar terminology. In particular, but without limiting the foregoing, this news release contains forward-looking statements or information pertaining to the purchase and cancellation of Common Shares under the NCIB. Risks and uncertainties that may affect actual results include, without limitation, that there can be no assurance as to how many Common Shares, if any, will ultimately be acquired by Tervita under its NCIB. Accordingly, this news release is subject to the disclaimer and qualified by the assumptions, qualifications and risk factors referred to in management's discussion and analysis dated March 13, 2019, in Tervita's 2019 annual report and in other Tervita public disclosure documents and filings with securities commissions in Canada (available on SEDAR at sedar.com), including factors such as the general economic conditions and dependency on exploration and production activity levels in the markets, changes in environmental regulations and increase in market competition and changes in industry practices, all of which may affect the Corporation's ability or decision to purchase Common Shares under its NCIB. Although Tervita believes the expectations expressed in such forward-looking statements and information are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements.
The forward-looking statements and information included in this news release are expressly qualified in their entirety by this cautionary statement. Tervita cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking statements and information contained in this news release are made as of the date hereof, and, except as required by law, Tervita does not undertake any obligation to update publicly or to revise any of the included forward-looking statements or information, whether as a result of new information, change in management's estimates or opinions, future circumstances or events or otherwise, except as expressly required by applicable securities law.
SOURCE Tervita Corporation
For further information: Investor Relations, 1-866-233-6690, IR@tervita.com