BURLINGTON, ON, May 8, 2019 /CNW/ - EcoSynthetix Inc. (TSX:
ECO) ("EcoSynthetix" or the "Company"), a renewable chemicals
company that produces a portfolio of commercially proven bio-based
products, 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") or alternative Canadian trading
systems certain of its outstanding common shares ("Shares").
The number of Shares to be purchased during the period of the
Bid from May 13, 2019 to May 12, 2020 will not exceed
4,714,286 Shares being approximately 10% of the outstanding
shares as of May 2, 2019, other than
the Shares held by directors, senior officers and principal
security holders. 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
May 2, 2019 there were 58,380,405
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 23,567 Shares,
other than block purchase exceptions. All purchases made pursuant
to the Bid will be made through the facilities of the TSX or
alternative Canadian trading systems or by such other means as may
be permitted by applicable Canadian securities laws 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 notice of intention to conduct a normal
course issuer bid, under which the Company sought and received
approval from the TSX to purchase up to 4,461,696 Common Shares,
2,087,500 Shares were purchased for the period from April 12, 2018 to April
11, 2019. Such Shares were purchased in open market
transactions at the market price of the Shares at the time of
acquisition. The volume weighted average price paid for such Shares
was $1.88 per Share.
About EcoSynthetix Inc. (www.ecosynthetix.com)
EcoSynthetix offers a range of sustainable engineered biopolymers
that allow customers to reduce their use of harmful materials, such
as formaldehyde and styrene-based chemicals. The Company's flagship
products, DuraBind™ and EcoSphere®, are used to manufacture wood
composites, paper and packaging, and enable performance
improvements, economic benefits and sustainability. The Company is
publicly traded on the Toronto Stock Exchange (T:ECO).
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. The forward-looking statements in
this Press Release include, but are not limited to, statements
regarding the number of Shares to be purchased under the Bid, if
any, and the timing of any such purchases, the Company's plans to
execute its commercial strategy, convert late-stage industrial
trial prospects into customers and expand the number of lines and
the volumes at existing customers, and other statements regarding
the Company's plans and expectations in 2019. 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 Company's ability to successfully allocate capital as
needed and to develop new products, as well as 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 4, 2019. 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.