Quarterly Dividend to be Increased by
10%
MISSISSAUGA, ON, May 2, 2022
/CNW/ - Cargojet Inc. ("Cargojet" or
the "Corporation") (TSX: CJT) today
announced that the Toronto Stock Exchange ("TSX") has
accepted its notice of intention to proceed with a normal course
issuer bid ("NCIB") for a portion of its common voting
shares and variable voting shares (together, the "Shares").
Cargojet also announced today that its Board of
Directors has approved a 10% increase to its quarterly dividend.
The next quarterly dividend of $0.2860 per Share will be declared in the normal
course in June 2022.
Normal Course Issuer Bid
The Corporation has implemented the NCIB in respect
of Shares because it believes that, from time to time over the next
twelve months, the market price of the Shares may not fully reflect
the underlying value of the Shares and that at such times the
purchase of the Shares would be in the best interests of the
Corporation. Any purchases made under the NCIB will be
made by Cargojet subject to favourable
market conditions at the prevailing market price at the time of
acquisition through the facilities of the TSX and/or
alternative Canadian trading systems.
Pursuant to the notices, Cargojet is authorized to
purchase up to $15,500,000 (the
"Aggregate Limit") of the Shares in the aggregate during the twelve
month period commencing May 4, 2022
and ending May 3, 2023. The Aggregate
Limit represents the maximum amount permitted under its credit
facilities and the Corporation may fulfill such Aggregate Limit by
the repurchase of the Shares as appropriate opportunities arise
from time to time. The Corporation intends to acquire up to a
maximum of 155,000 Shares, representing approximately 0.89% of its
outstanding Shares.
As at April 28, 2022, there were
17,324,258 Shares outstanding. Under the NCIB, other
than purchases made under block purchase exemptions,
Cargojet may purchase up to 19,583 Shares on the
TSX during any trading day, which represents
approximately 25% of the average daily trading volume of such
Shares on the TSX for the most recently completed six
calendar months prior to the TSX's acceptance of the
notice of the NCIB. Any Shares purchased under the
NCIB will be cancelled.
Automatic Share Purchase Plan
In connection with the NCIB, the Corporation entered into an
automatic share purchase plan ("ASPP") with a designated broker.
Pursuant to the ASPP, the Corporation has instructed the designated
broker to make purchases under the NCIB in accordance with the
terms of the ASPP. Such purchases will be determined by the
designated broker at its sole discretion based on purchasing
parameters set by Cargojet in accordance with the rules of the TSX,
applicable securities laws and the terms of the ASPP. The ASPP has
been pre-cleared by the TSX and will be implemented today. All
purchases made under the ASPP will be included in computing the
number of Shares purchased under the NCIB.
About Cargojet
Cargojet is Canada's leading
provider of time sensitive premium air cargo services to all major
cities across North America,
providing dedicated, ACMI and international charter services and
carries over 25,000,000 pounds of cargo weekly. Cargojet operates
its network with its own fleet of 31 cargo aircraft.
Notice on Forward Looking Statement
Certain statements contained herein constitute "forward-looking
statements", including with respect to the Corporation's intention
to purchase Shares under the NCIB and ASPP as described above, the
timing and benefits of such purchases, and the increase to the
Corporation's quarterly dividend. Forward-looking statements look
into the future and provide an opinion as to the effect of certain
events and trends on the business. Forward-looking statements
may include words such as
"plans," "intends," "anticipates,"
"should," "estimates," "expects,"
"believes," "indicates," "targeting," "suggests" and similar
expressions. These forward-looking statements are based on current
expectations and entail various risks and uncertainties. Reference
should be made to the Corporation's most recent Annual Information
Form filed with the Canadian securities regulators, and it's most
recent Consolidated Financial Statements and Notes thereto and
related Management's Discussion and Analysis (MD&A), for a
summary of major risks. Actual results may materially
differ from expectations, if known
and unknown risks or uncertainties
affect our business, or if our
estimates or assumptions prove inaccurate. The forward-looking
statements contained or incorporated by reference in this news
release represent Cargojet's expectations as of the date of this
news release (or as of the date they are otherwise stated to be
made) and are subject to change after such date. However, Cargojet
disclaims any intention or obligation to update or revise any
forward-looking statements whether because of new information,
future events or otherwise, except as required under applicable
securities laws. In the event Cargojet does update any
forward-looking statement, no inference should be made that
Cargojet will make additional updates with respect to that
statement, related matters, or any other forward-looking
statement.
The TSX has not reviewed and does not accept responsibility for
the adequacy or accuracy of this statement.
SOURCE Cargojet Inc.