MISSISSAUGA, ON, June 20,
2022 /CNW/ - Cargojet Inc. ("Cargojet" or the
"Corporation") (TSX: CJT) today announced that it received approval
from the Toronto Stock Exchange ("TSX") to amend its
previously-announced normal course issuer bid ("NCIB") in order to
increase the maximum number of common voting shares and variable
voting shares (together, the "Shares") that may be repurchased from
155,000 Shares, or 0.92% of the public float as at April 28, 2022 (the reference date for the NCIB),
to 1,500,000 Shares, or 8.91% of the public float as at such
date.
Cargojet's Board of Directors believes that, from time to
time during the course of the NCIB, the market price of the Shares
may not fully reflect the underlying value of the Shares and
purchases of Shares pursuant to the NCIB may be a desirable use of
funds that will create value for shareholders. Cargojet has a
leading position in both its domestic and international business
that mitigates risks associated to capacity, pricing to customers
and capital expenditures, and allows it to continue to pursue
its growth strategies.
Any purchases made under the NCIB, which began on May 4, 2022 and will end no later than
May 3, 2023, are 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.
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,
as calculated in accordance with TSX rules. Any Shares purchased
under the NCIB are cancelled.
The automatic share purchase plan ("ASPP") entered into
with a designated broker on May 2,
2022 remains unchanged. The ASPP allows for the purchase of
Shares under the NCIB at times when the Corporation ordinarily
would not be active in the market due to self-imposed trading
blackout periods. Outside of these pre-determined blackout periods,
Shares are purchased in accordance with management's discretion
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.