Alithya Group Launches Share Buyback Program for Growth
Alithya's Normal Course Issuer Bid Explained
Alithya Group inc. (TSX: ALYA), a notable player in strategy and digital transformation, has announced an important milestone in its journey toward value enhancement. The Toronto Stock Exchange has approved the company's notice for a normal course issuer bid (NCIB) program, signaling a commitment to returning capital to its shareholders.
Strategic Rationale Behind the Buyback
The decision to initiate this share repurchase strategy stems from Alithya's intent to fortify its balance sheet and make judicious capital investments. By buying back shares, Alithya hopes to optimize capital allocation, thereby progressing toward its growth objectives while maintaining a focus on sustainable value creation for its shareholders.
Ceo Paul Raymond's Insight
Paul Raymond, the company's CEO, articulated the nuances of this strategy, asserting, "The market value of Alithya's Class A subordinate voting shares does not often capture our true worth and growth potential." He emphasized that the firm is set on executing a robust growth strategy aimed at profitability and long-lasting value.
Details of the NCIB Program
Under the NCIB, Alithya is authorized to buy back up to 5,939,183 Class A Shares, equating to 10% of its public float. This figure is based on the total shares issued as of the most recent stock market close. The execution of this buyback will occur through open market transactions via the TSX or alternative trading systems permitted under regulatory guidelines.
Effective Trading Parameters
The NCIB details stipulate that a maximum of 14,545 Class A Shares, or 25% of the average daily trading volume, may be repurchased on any given day. All repurchased shares under the NCIB are set for cancellation, thus reducing the overall share count and enhancing the value for remaining shareholders.
Timeline for Share Repurchases
Commencement of the buybacks is scheduled, with the window for purchasing shares starting shortly. The end date of the program will be dictated by either the set expiration date or upon purchase of the maximum allowable shares. Alithya is dedicated to following market prices for acquisitions, accounting for brokerage fees, underscoring a transparent approach to stakeholder engagement.
Automatic Share Purchase Plan (ASPP)
To facilitate the execution of the NCIB, Alithya will engage with a designated broker under an automatic share purchase plan. This arrangement allows for transactions during periods when standard buybacks might be restricted, thus fostering flexibility within operational parameters.
Risk Management and Future Outlook
Management’s decisions regarding timing and quantity of purchases under the NCIB are influenced by various market conditions and strategic considerations. Alithya aims to approach its buyback strategy with a keen awareness of market dynamics and shareholder interests, demonstrating an adaptable management philosophy.
Understanding Forward-Looking Statements
It is essential to recognize that forward-looking statements within this announcement reflect management's strategies and sentiments, projecting future performance and objectives. While these expectations are grounded in current assessments, they contain inherent risks and uncertainties that could impact actual outcomes.
About Alithya Group inc.
Alithya is a trusted advisor committed to leveraging cutting-edge technologies and AI in its consulting and digital transformation endeavors. The company's mission revolves around solving complex business challenges, helping clients modernize processes, and unlocking new opportunities. An unwavering dedication to excellence is at the core of Alithya's operational ethos as it strives to navigate the evolving corporate landscape effectively and sustainably.
Frequently Asked Questions
What is Alithya's normal course issuer bid (NCIB)?
The NCIB is a program allowing Alithya to repurchase its Class A Shares from the market to enhance shareholder value.
Why is Alithya initiating a share buyback program?
The share buyback reflects Alithya's strategy to optimize its balance sheet while prioritizing sustainable, long-term value for its shareholders.
Who is leading Alithya Group?
Paul Raymond serves as the CEO of Alithya, guiding the company's strategic direction and commitment to growth.
What are the trading limitations of the NCIB?
The buyback program allows Alithya to repurchase a maximum of 14,545 shares per day based on TSX trading regulations.
What is the timeline for the share buyback program?
The repurchases will commence soon and conclude either a year later or upon reaching the maximum allowable purchase limit under the NCIB.
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