MONTREAL, Aug. 29, 2022 (GLOBE NEWSWIRE) -- Supremex Inc. ("Supremex" or the "Company") (TSX: SXP), a leading North American manufacturer and marketer of envelopes and a growing provider of paper-based packaging solutions, today announced that it has received approval from the Toronto Stock Exchange (the "TSX") to purchase by way of a normal course issuer bid ("NCIB"), for cancellation, up to 1,301,713 of its common shares, representing approximately 5.0% of its 26,034,269 issued and outstanding common shares as of August 18, 2022.
Purchases under the NCIB will be made through the facilities of the TSX and/or alternative trading systems in Canada, if eligible, in accordance with applicable securities laws and regulations, over a maximum period of 12 months beginning on August 31, 2022 and ending on August 30, 2023. The price to be paid by Supremex for any common share will be the market price at the time of acquisition. All common shares purchased pursuant to the NCIB will be cancelled.
The average daily trading volume of Supremex' common shares over the six completed calendar months prior to the date hereof, as calculated in accordance with TSX rules, is 39,244 common shares. Accordingly, under TSX rules, Supremex is entitled to purchase, on any trading day, up to 9,811 common shares, representing 25% of such average daily trading volume.
In connection with the NCIB, the Company entered into an automatic share purchase plan. Under the automatic share purchase plan, the Company's broker may repurchase common shares which it would ordinarily not be permitted to due to regulatory restrictions or self-imposed blackout periods. Purchases will be made by the Company's broker based upon the parameters prescribed by the TSX and applicable Canadian securities laws and the terms of the parties' written agreement. The automatic share purchase plan has been pre-cleared by the TSX and will be implemented effective as of August 31, 2022.
Supremex believes that, from time to time, the purchase of its common shares under the NCIB is an appropriate and desirable use of available cash to increase shareholder value.
From August 31, 2021 to the date hereof, Supremex repurchased 920,100 of its outstanding common shares through the facilities of the TSX and/or alternative trading systems in Canada under a normal course issuer bid, at a weighted average price per share of $2.8229. The TSX had approved the purchase of 1,346,648 common shares under a normal course issuer bid over that period.
Supremex is a leading North American manufacturer and marketer of envelopes and a growing provider of paper-based packaging solutions. Supremex operates ten manufacturing facilities across four provinces in Canada and four manufacturing facilities in the United States employing approximately 800 people. Supremex' growing footprint allows it to efficiently manufacture and distribute envelope and packaging solutions designed to the specifications of major national and multinational corporations, resellers, government entities, SMEs and solutions providers.
For more information, please visit www.supremex.com.
Chief Financial Officer
514 595-0555, extension 2316
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