Exco Technologies Limited Announces Normal Course Issuer Bid

Rhea-AI Summary

Exco Technologies has received TSX approval for a new Normal Course Issuer Bid (NCIB), allowing the company to repurchase up to 1,770,513 common shares (10% of public float) between February 20, 2025, and February 19, 2026. The company currently has 38,501,112 common shares outstanding as of February 12, 2025.

Purchases will be made through TSX and alternative Canadian trading systems at market rates, with a daily limit of 4,589 shares (25% of average daily trading volume). Under the previous NCIB, Exco purchased 356,400 shares at an average price of $7.63 per share.

The Board believes this initiative may enhance shareholder value when opportunities arise, as the market price might not always reflect the company's underlying value. Purchases will be funded through cash and/or bank facilities.

Positive

• Company implementing share buyback program, potentially enhancing shareholder value
• Strong cash position allowing for share repurchases
• Previous successful buyback execution with 356,400 shares purchased

Negative

• Low daily trading volume (18,359 shares) limiting buyback execution speed

TORONTO, Feb. 18, 2025 (GLOBE NEWSWIRE) -- Exco Technologies Limited (TSX: XTC) ("Exco" or the "Company") today announced that the Toronto Stock Exchange ("TSX") has approved the Company's normal course issuer bid ("NCIB"). Under the NCIB, Exco has the right to purchase for cancellation, from February 20, 2025 to February 19, 2026, a maximum of 1,770,513 common shares, representing 10% of the 17,705,131 shares forming Exco's public float as at February 12, 2025. As of February 12, 2025, Exco had 38,501,112 common shares issued and outstanding.

Any shares purchased by Exco under the NCIB will be effected through the facilities of TSX as well as on alternative Canadian trading systems, at prevailing market rates and any common shares purchased by the Company will be cancelled. The actual number of shares that may be purchased and the timing of any such purchases will be determined by Exco. Any purchases made by Exco pursuant to the NCIB will be made in accordance with the rules and policies of the TSX.

During the most recently-completed six months, the average daily trading volume for the common shares of Exco on the TSX was 18,359 shares. Consequently, under the policies of the TSX, Exco will have the right to repurchase under its NCIB, during any one trading day, a maximum of 4,589 shares, representing 25% of the average daily trading volume. In addition, Exco will be allowed to make, once per calendar week, a block purchase (as such term is defined in the TSX Company Manual) of shares not directly or indirectly owned by insiders of Exco, in accordance with the TSX policies. Exco will fund the purchases through available cash and/or bank facilities. Pursuant to a previous notice of intention to conduct a normal course issuer bid, under which Company sought and received approval from the TSX to purchase up to 1,780,000 common shares for the period of February 20, 2024 to February 19, 2025, the Company has purchased 356,400 common shares on the TSX as of February 12, 2025 at a weighted average purchase price of $7.63 per common share.

Exco’s Board of Directors believes the underlying value of the Company may not be reflected in the market price of its common shares from time to time and that, at appropriate times, repurchasing its shares through the NCIB may represent a good use of Exco's financial resources, as such action can protect and enhance shareholder value when opportunities or volatility arise. Thus, the Board has determined that the NCIB is in the best interest of the Company and its shareholders.

Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries.  Through our 21 strategic locations in 9 countries, we employ approximately 5,000 people and service a diverse and broad customer base.

Source:	Exco Technologies Limited (TSX-XTC)
Contact:	Darren Kirk, President and Chief Executive Officer
Telephone:	(905) 477-3065 ext. 7233
Website:	https://www.excocorp.com

FAQ

How many shares can Exco Technologies (EXCOF) repurchase under the new NCIB?

Exco can repurchase up to 1,770,513 common shares, representing 10% of its public float as of February 12, 2025.

What is the duration of Exco Technologies' 2025 share buyback program?

The NCIB runs from February 20, 2025, to February 19, 2026.

What was the average purchase price of Exco's previous share buyback?

Under the previous NCIB, Exco purchased shares at a weighted average price of $7.63 per common share.

How many shares can Exco (EXCOF) repurchase per day under the new NCIB?

Exco can repurchase a maximum of 4,589 shares per trading day, representing 25% of the average daily trading volume.

How will Exco Technologies fund the 2025-2026 share buyback program?

Exco will fund the share purchases through available cash and/or bank facilities.