5N Plus receives TSX approval to repurchase shares

Engineered materials and specialty chemicals producer 5N Plus Inc of Montreal, Quebec, Canada says that the Toronto Stock Exchange (TSX) has approved its normal course issuer bid (NCIB), giving it the right to purchase for cancellation, from 1 March 2019 to 29 February 2020, up to 3,515,926 common shares (7% of the 50,227,527 shares forming 5N Plus’ public float as at 18 February). As of 18 February, 5N Plus had 84,622,291 common shares issued and outstanding. During the NCIB period (subject to TSX and other regulatory authorities’ approval), the firm may purchase more than 3,515,926 common shares, up to a maximum of 5,022,752 (representing 10% of the public float).

“5N Plus is reaching the half-way point of its strategic plan 5N21 and the company is delivering compelling results, well aligned with the goals defined under the strategic plan,” says president & CEO Arjang Roshan.
5N Plus provides purified metals such as bismuth, gallium, germanium, indium, selenium and tellurium, and also produces related II-VI 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.

Also, in recent years 5N Plus has expanded its portfolio of specialty semiconductors to include wafer-level products based on the III-V and II-VI families of materials. These address several growth markets, including medical imaging, sensing, security, surveillance and renewable energy in both space and terrestrial applications. Last year, the firm announced that it would double the capacity of its semiconductor plant in Montreal to keep pace with growing market demands.

“As 5N Plus continues to deliver sustained and competitive results, it is important to ensure the underlying value of the company reflects these results,” says Roshan. “To that end, the company’s board of directors has approved a share repurchase plan through NCIB and the management has secured needed resources to support this program while ensuring adequate financial resources remains for the various initiatives related to both core and growth businesses,” he adds. “The 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 5N Plus' financial resources, as such action can protect and enhance shareholder value when opportunities or volatility arise.”

5N Plus will fund the purchases through available cash. In the previous 12 months, the firm has not repurchased any of its outstanding common shares.

In connection with its NCIB, 5N Plus has entered into an automatic share purchase plan with National Bank Financial Inc 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).

See related item:

5N Plus shareholders approve reduction in stated capital

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Visit: www.5nplus.com