Renewal of Normal Course Issuer Bid by Element Fleet Management
Element Fleet Management Corp. (TSX: EFN) has taken a significant step in its capital return strategy by announcing the renewal of its normal course issuer bid (NCIB). With a focus on enhancing shareholder value, this bid allows the company to repurchase its common shares from the open market, thereby reducing the total number of shares in circulation.
Details of the NCIB
According to the approval received from the Toronto Stock Exchange (TSX), Element may acquire up to 39,930,568 of its common shares, which represents approximately 10% of its total public float. This initiative is set to commence on November 20, 2025, and will continue until the earlier of November 19, 2026, or until the maximum number of shares allowed is purchased. The company will determine the actual number and timing of these share repurchases, all while adhering to TSX regulations and applicable laws.
Trading Volume and Purchase Limitations
For the six-month period that ends on October 31, 2025, the average daily trading volume of Element's shares was 586,717. Consequently, the daily purchases under the NCIB will be restricted to 146,679 shares unless the company opts for block purchases, which are exempt from this restriction. As of early November 2025, the total count of shares issued and outstanding stands at 400,206,542, thereby yielding a public float of 399,305,689 shares.
Funding and Share Cancellation
The funding for the purchases under the NCIB will primarily come from Element's existing cash resources. Notably, any shares repurchased will be subsequently canceled, which is expected to positively impact the share price and overall value for remaining shareholders. This initiative reflects the company's commitment to utilizing funds judiciously to benefit its stock performance.
Utilizing an Automatic Securities Purchase Plan
To streamline its share repurchase process, Element will employ an automatic securities purchase plan (ASPP). This plan, which has been approved by the TSX, will facilitate the timing of share repurchases, particularly during periods when the company would typically refrain from purchasing shares due to blackout periods. The independent designated broker will have the discretion to execute these purchases in accordance with pre-established parameters set by the company.
Termination of the ASPP
The ASPP will conclude once the purchase limits outlined within the plan or the NCIB are met. Additionally, if Element decides to terminate the ASPP, a public announcement will be made. This structured approach ensures that the company's repurchase activities are both transparent and compliant with regulatory standards.
About Element Fleet Management
Element Fleet Management is recognized as the most prominent publicly traded pure-play automotive fleet management company globally. With a commitment to being purpose-driven and client-centric, it offers scalable and sustainable fleet solutions empowered by technology. Element operates extensively across North America, Australia, New Zealand, and Ireland while broadening its global reach through innovative platforms like Autofleet. By providing end-to-end fleet management services—from vehicle acquisition and maintenance to risk management and optimization—Element effectively addresses the diverse needs of its clients.
Contact Information
For inquiries or additional information, please reach out:
Crystal Zhu
Manager, Investor Relations
(437) 341-3789
czhu@elementcorp.com
Sumit Malhotra
SVP & Head of Financial Performance
(437) 343-7723
smalhotra@elementcorp.com
Frequently Asked Questions
What is the purpose of the NCIB?
The NCIB allows Element Fleet Management to repurchase its shares, reducing the overall number of outstanding shares and enhancing shareholder value.
How many shares can Element Fleet purchase under the NCIB?
Element Fleet is authorized to purchase up to 39,930,568 common shares under the renewed NCIB.
What funding sources will be used for the share repurchases?
The share repurchase program will be financed using the company's existing cash resources.
How does the ASPP work?
The ASPP allows for the purchase of shares at times when the company cannot execute trades due to blackout periods, ensuring continuous purchasing capability.
What markets will the repurchases occur in?
Purchases under the NCIB will primarily be conducted through the TSX and may also utilize alternative trading systems within Canada.
