Maxim Power Corporation Gets Approval for Share Buyback
Maxim Power Corp. (TSX: MXG) has some exciting updates regarding its capital management strategy. The Corporation has received approval from the Toronto Stock Exchange (TSX) to start a normal course issuer bid (NCIB), allowing it to buy back up to 2,529,885 of its common shares. This amount is about 5% of the total outstanding shares, which is currently 50,597,708.
About the Normal Course Issuer Bid
The NCIB is scheduled to begin on September 16, 2024, and will run until September 15, 2025, unless Maxim Power completes or terminates the bid before that time. Under this plan, the Corporation can purchase shares from the market at current prices, adhering to daily trading limits set by regulatory guidelines.
Daily Purchase Limit
Maxim Power has set a daily purchase limit of 1,382 shares, representing 25% of its average daily trading volume of 5,530 shares over the past six months. Additionally, the Corporation is permitted to make one block purchase each week that exceeds the daily limit, granting more flexibility in managing its share repurchase strategy.
Introducing the Automatic Share Purchase Plan
To further streamline these transactions, Maxim Power will implement an automatic share purchase plan (ASPP), starting on the same day as the NCIB. This plan will allow the purchase of shares even during times when the Corporation typically avoids market activity due to internal trading restrictions.
Advantages for Shareholders
Management believes that market prices may not always reflect the true value of the shares, especially at certain times. By executing these share buybacks, the overall number of outstanding shares will decrease, which will proportionately increase the ownership stake of the remaining shareholders, benefiting all.
Review of Previous Buyback Program
This new NCIB comes after the end of a prior buyback program that allowed Maxim to repurchase up to 2,526,477 shares. During that program, the Corporation successfully bought back 312,904 shares at an average price of $4.36 each, demonstrating its commitment to increasing shareholder value.
Looking Ahead for Maxim Power
Based in Calgary, Alberta, Maxim Power is recognized as a leading independent power producer in Canada. Its main asset is the 300 MW H.R. Milner Plant, a state-of-the-art gas-fired facility that began operations in late 2023. In the future, Maxim Power plans to focus on projects in Alberta, including additional gas-fired and renewable energy developments.
Pursuing Innovation
Management at Maxim Power is actively seeking more opportunities in the energy sector, aiming to enhance its portfolio with sustainable and innovative solutions that align with evolving market trends and regulatory requirements.
If you have any questions about this announcement or need more information about the company, please contact:
Bob Emmott, President and CEO, (403) 263-3021
Kyle Mitton, CFO and Vice President, Corporate Development, (403) 263-3021
Frequently Asked Questions
What is Maxim Power Corp.'s stock symbol?
The stock symbol for Maxim Power Corp. is "MXG" on the TSX.
When does the NCIB begin?
The normal course issuer bid is set to commence on September 16, 2024.
How many shares can Maxim Power buy back?
Maxim Power has permission to repurchase up to 2,529,885 common shares under the NCIB.
What was the average price per share in the previous buyback?
In the earlier buyback program, Maxim Power repurchased shares at a weighted average of $4.36 each.
What kind of projects is Maxim Power pursuing?
Maxim Power is concentrating on power projects, particularly focusing on gas-fired generation and wind energy initiatives in Alberta.
