ADF Group Inc announces the renewal of a normal course issuer bid on the Corporation subordinate voting shares
TERREBONNE, QC, May 30, 2014 /CNW Telbec/ – ADF Group Inc ("ADF" or the "Corporation") (TSX: DRX) announces that it has obtained the approval of its Board of Directors and the Toronto Stock Exchange to renew its normal course issuer bid.
Thus, from June 4, 2014 to June 3, 2015, ADF will be authorized to repurchase for cancellation, up to 1,375,824 subordinate voting shares. These shares will be repurchased from time to time when deemed appropriate by the Corporation, considering current economic conditions, its liquidities and the advancement of its development project in the State of Montana in the United States. These 1,375,824 shares represent approximately 10% of the subordinate voting shares held by the public. At the close of business on May 20, 2014, the number of subordinate voting shares outstanding totalled 18,148,235, of which 13,763,243 shares or 75.8% thereof were held by the public.
ADF's management and Board of Directors believe that the price of the subordinate voting shares sometimes does not reflect the intrinsic value of the Corporation and that, consequently, this repurchase of the subordinate voting shares would be a judicious use of ADF's funds. The repurchase of the subordinate voting shares will be carried out by ADF on the open market through the Toronto Stock Exchange in compliance with its requirements, which currently limit the repurchase to 6,218 shares per day, or 25% of the number of subordinate voting shares traded daily, on average, over the last six months, with the exception of block trades.
The price that ADF will pay for the subordinate voting shares that it will acquire will be the market price of those shares at their acquisition date. All the shares repurchased under the normal course issuer bid will be cancelled. The repurchase of shares will be made at ADF's discretion.
ADF, over the last twelve months, has not repurchased any subordinate voting shares. However, under the last normal course issuer bid which was carried out through the Toronto Stock Exchange from December 11, 2012 through December 10, 2013, the Corporation has repurchased 8,970 subordinate voting shares which were all repurchased more than twelve months ago, at a weighted average price of $1.23 per share.
To the knowledge of ADF, no director or executive officer of the Corporation has the intent to sell shares for the duration of the offer.
About ADF Group Inc.
ADF Group Inc. is a North American leader in the design and engineering of connections, fabrication and installation of complex steel structures, heavy steel built-ups, as well as miscellaneous and architectural metals for the non-residential construction industry. ADF is one of the few players in the industry capable of handling highly technically complex mega projects on fast-track schedules in the commercial, institutional, industrial and public sectors.
This press release contains forward-looking statements reflecting ADF objectives and expectations. These statements are identified by the use of verbs such as "expect" as well as by the use of future or conditional tenses. By their very nature these types of statements involve risks and uncertainty. Consequently, reality may differ from ADF's expectations.
SOURCE Groupe ADF Inc
Jean-François Boursier, CPA, CA, Chief Financial Officer, Telephone: (450) 965-1911 / 1 (800) 263-7560, Web Site: www.adfgroup.com