Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) (“Algoma” or “the
Company”) announced today that the Toronto Stock Exchange (the
“TSX”) has approved the Company’s intention to renew its normal
course issuer bid (“NCIB”) for a portion of its common shares
(“Shares”) as appropriate opportunities arise from time to time.
The Company believes that the market price of the Shares may not,
from time to time, fully reflect their value and accordingly the
purchase of Shares would be in the best interests of the Company
and an attractive use of available funds.
Pursuant to the NCIB, the Company may acquire,
from time to time, over a period of 12 months starting March 6,
2023 and ending March 5, 2024, up to a maximum of 5,178,394 of its
Shares, or approximately 5% of its 103,567,884 issued and
outstanding Shares as of February 28, 2023. In accordance with TSX
rules, the number of Shares that can be purchased pursuant to the
NCIB is subject to a current daily maximum of 50,984 Shares (which
is equal to 25% of 203,938 Shares, being the average daily trading
volume during the last six calendar months), subject to certain
exceptions prescribed by the TSX, including block purchase
exceptions. In addition, all purchases under the NCIB will be
conducted in accordance with Rule 10b-18 under the U.S. Securities
Exchange Act of 1934, as amended (the “Exchange Act”).
The NCIB commences on March 6, 2023 and will
terminate on the earlier of March 5, 2024, or such earlier time as
the Company completes its purchases pursuant to the NCIB or
provides notice of termination. Purchases under the NCIB will be
made through the facilities of the TSX, NASDAQ or through
alternative Canadian systems and in accordance with applicable
regulatory requirements at a price per Share equal to the market
price at the time of acquisition. All Shares purchased under the
NCIB will be cancelled upon their purchase.
In connection with the NCIB, the Company has
entered into an automatic repurchase plan (the "Plan") with its
designated broker. The Plan is intended to allow for the purchase
of Shares under the NCIB at times when it would ordinarily not be
permitted to purchase shares due to regulatory restrictions and
customary self-imposed blackout periods. The Plan is also intended
to meet the requirements of Rule 10b5-1 under the Exchange Act. The
Plan constitutes an "automatic securities purchase plan" for
purposes of applicable Canadian securities legislation and has been
reviewed by the TSX.
Under Algoma’s normal course issuer bid expiring
March 2, 2023 (the “2022 NCIB”), Algoma received
approval from the TSX to purchase for cancellation up to a maximum
of 7,397,889 Shares, or approximately 5% of the Company’s
147,957,790 outstanding Shares at the time of approval. Pursuant to
the 2022 NCIB, the Company has repurchased and cancelled 3,364,262
Shares, at a weighted average purchase price of approximately
US$8.5146 per Share through market purchases on the TSX, Nasdaq and
other Canadian alternative trading systems.
About Algoma Steel Group
Inc.
Based in Sault Ste. Marie, Ontario, Canada,
Algoma is a fully integrated producer of hot and cold rolled steel
products including sheet and plate. Driven by a purpose to build
better lives and a greener future, Algoma is positioned to deliver
responsive, customer-driven product solutions to applications in
the automotive, construction, energy, defense, and manufacturing
sectors. Algoma is a key supplier of steel products to customers in
North America and is the only producer of discrete plate products
in Canada. Its state-of-the-art Direct Strip Production Complex
(“DSPC”) is one of the lowest-cost producers of hot rolled sheet
steel (HRC) in North America.
Algoma is on a transformation journey,
modernizing its plate mill and adopting electric arc technology
that builds on the strong principles of recycling and environmental
stewardship to significantly lower carbon emissions. Today Algoma
is investing in its people and processes, working safely, as a team
to become one of North America's leading producers of green
steel.
As a founding industry in their community,
Algoma is drawing on the best of its rich steelmaking tradition to
deliver greater value, offering North America the comfort of a
secure steel supply and a sustainable future as your partner in
steel.
Cautionary Statement Regarding
Forward-Looking Statements
This news release contains “forward-looking
information” under applicable Canadian securities legislation and
“forward-looking statements” within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995 (collectively, “forward
looking statements”), including statements regarding Algoma’s
strategic objectives. These forward-looking statements generally
are identified by the words “believe,” “project,” “expect,”
“anticipate,” “estimate,” “intend,” “strategy,” “future,”
“opportunity,” “plan,” “design,” “pipeline,” “may,” “should,”
“will,” “would,” “will be,” “will continue,” “will likely result,”
and similar expressions. Forward-looking statements are
predictions, projections and other statements about future events
that are based on current expectations and assumptions. Many
factors could cause actual future events to differ materially from
the forward-looking statements in this document. Readers should
also consider the other risks and uncertainties set forth in the
section entitled “Risk Factors” and “Cautionary Note Regarding
Forward-Looking Statements” in Algoma’s Annual Report on Form 20-F,
filed by Algoma with the Ontario Securities Commission (the “OSC”)
(available under the company’s SEDAR profile at www.sedar.com) and
with the SEC (available at www.sec.gov), as well as in Algoma’s
current reports with the OSC and SEC. Forward-looking statements
speak only as of the date they are made. Readers are cautioned not
to put undue reliance on forward-looking statements, and Algoma
assumes no obligation and does not intend to update or revise these
forward-looking statements, whether as a result of new information,
future events, or otherwise.
For more information, please contact:
Michael Moraca Treasurer & Investor Relations
Officer Algoma Steel Group Inc. Phone: +1.705.945.3300 E-mail:
IR@algoma.com
Algoma Steel (NASDAQ:ASTL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Algoma Steel (NASDAQ:ASTL)
Historical Stock Chart
From Jul 2023 to Jul 2024