17 November 2014

5N Plus receives approval for share repurchase plan

Specialty metal and chemical products firm 5N Plus Inc of Montreal, Québec, Canada says that the Toronto Stock Exchange (TSX) has approved its normal course issuer bid (NCIB). Under the NCIB, 5N Plus has the right to purchase for cancellation, from 19 November 2014 to 18 November 2015, up to 4,691,230 common shares, representing 10% of the 46,912,306 shares forming 5N Plus’ public float. As of 14 November, 5N Plus had 83,979,657 common shares issued and outstanding.

5N Plus provides specialty purified metals such as bismuth, gallium, germanium, indium, selenium and tellurium, and also produces related semiconducting compounds such as cadmium telluride (CdTe), cadmium sulphide (CdS) and indium antimonide (InSb) as precursors for the growth of crystals for solar, LED and eco-friendly materials applications. The firm also has fully integrated closed-loop recycling facilities.

Any shares purchased by 5N Plus under the NCIB will be effected through the facilities of TSX as well as on alternative Canadian trading platforms, at prevailing market rates, and any common shares purchased by the firm will be cancelled. The actual number of shares that may be purchased and the timing of any such purchases will be determined by 5N Plus. Purchases 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 5N Plus’ common shares on the TSX was 165,982 shares. Consequently, the firm will have the right to repurchase, during any one trading day, a maximum of 41,495 shares, representing 25% of the average daily trading volume. In addition, 5N Plus will be allowed to make, once per calendar week, a block purchase of shares not directly or indirectly owned by insiders of 5N Plus. The firm will fund the purchases through available cash. In the previous 12 months, it has not repurchased any of its outstanding common shares.

The board of directors believes that the underlying value of the firm 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 good use of 5N Plus' financial resources, as such action can protect and enhance shareholder value when opportunities or volatility arise. The board has thus determined that the NCIB is in the best interest of the firm and its shareholders, as well as good administrative practice to implement and renew systematically every year.

In connection with its NCIB, 5N Plus has entered into an automatic share purchase plan with National Bank Financial Inc in order to allow for purchases under the NCIB during 5N Plus’ ‘black-out’ periods, as permitted by the TSX Company Manual and the Securities Act (Québec).

Tags: 5N Plus

Visit: www.5nplus.com