Maxim Power Corp. Launches New Share Buyback Program
Maxim Power Corp. Launches New Share Buyback Program
Maxim Power Corp. ("MAXIM" or the "Corporation") (TSX: MXG) has received the approval from the Toronto Stock Exchange ("TSX") to initiate a normal course issuer bid ("NCIB"). This program permits the Corporation to repurchase up to 3,182,528 common shares for cancellation. As of a recent date, MAXIM had about 63,650,563 Shares issued and outstanding, meaning this buyback program represents around 5% of the total shares.
Overview of the Normal Course Issuer Bid
The NCIB is scheduled to start shortly and will allow MAXIM to buy back shares until the following year, unless completed earlier. The shares will be repurchased through a registered broker on the TSX or other Canadian trading platforms at the market price active during the transaction.
Implementation of Share Purchase Plan
To facilitate the NCIB, MAXIM will be enacting an automatic share purchase plan ("ASPP") effective September 16, 2025. This plan aims to ensure shares are purchased systematically, particularly during times when the Corporation is not active in the open market due to internal trading restrictions. Prior to these blackout periods, MAXIM might instruct its broker on selected shares to buy, based on set guidelines established by the Corporation.
Strategic Implications for Shareholders
The management team at MAXIM believes that the current market price of the shares might not accurately reflect their underlying value at all times. When this occurs, repurchasing shares could be beneficial for the shareholders by diminishing the number of shares outstanding, effectively increasing the proportionate interest of remaining shareholders.
Historical Context of the NCIB
This new NCIB follows the conclusion of a prior buyback program, which permitted a purchase of up to 2,529,885 Shares and was valid until recently. Under that previous program, MAXIM successfully repurchased 117,272 Shares at a weighted average price, reflecting their commitment to maintaining shareholder value.
About Maxim Power Corp.
Operating from Calgary, Alberta, MAXIM is recognized as one of Canada’s largest independent power producers. The company concentrates exclusively on power projects within Alberta. Their flagship asset is the H.R. Milner Plant, a modern combined cycle gas-fired power facility, which became operational in the latter part of 2023. In addition to this, MAXIM is actively seeking opportunities for further development, including a permitted gas-fired generation project and a wind power initiative currently in the permitting phase. Investors can track MAXIM's performance under the TSX ticker symbol "MXG".
Contact Information
For more information regarding the operations and strategic initiatives of MAXIM, stakeholders can reach out to Bob Emmott, President and CEO, or Kyle Mitton, CFO and Vice President of Corporate Development, both readily available at (403) 263-3021.
Frequently Asked Questions
What is the purpose of the NCIB?
The NCIB allows Maxim Power Corp. to buy back shares, helping to maintain shareholder value and potentially stabilize the share price.
How many shares will MAXIM buy back?
MAXIM plans to repurchase up to 3,182,528 common shares under the new NCIB.
What will happen to the shares purchased under the NCIB?
The purchased shares will be canceled, reducing the number of outstanding shares in the market.
What is the automated share purchase plan?
The ASPP will enable systematic buying of shares during predefined periods when trading is limited for MAXIM.
How does the buyback affect existing shareholders?
By reducing the total number of outstanding shares, the buyback program increases the percentage ownership of remaining shareholders.
About The Author
Contact Logan Wright privately here. Or send an email with ATTN: Logan Wright as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.