Maxim Power Corporation Secures TSX Approval for Buyback Plan

Author: Olivia Taylor Updated: 09-11-2024 08:45 PM

Maxim Power Corporation Receives Approval for Share Buyback

Maxim Power Corp. (TSX: MXG) has exciting news regarding its capital management strategy. The Corporation has obtained the green light from the Toronto Stock Exchange (TSX) to initiate a normal course issuer bid (NCIB). Through this program, Maxim Power is authorized to repurchase up to 2,529,885 of its common shares. This number represents roughly 5% of the total shares currently outstanding, which stood at 50,597,708.

Details of the Normal Course Issuer Bid

The share buyback under the NCIB is set to commence on September 16, 2024, and will be active until September 15, 2025, or until the completion or termination of the bid by Maxim Power. Under the plan, the Corporation may purchase shares from the market at prevailing prices, adjusting based on the daily trading limitations defined by regulatory guidelines.

Strategic Purchase Cap

Maxim Power has established a daily purchase cap of 1,382 shares, calculated as 25% of its average daily trading volume of 5,530 shares over the past six months. In addition, the Corporation can execute one block purchase each calendar week that exceeds the daily limitations, allowing for enhanced flexibility in managing its share repurchases.

Automatic Share Purchase Plan

To facilitate these transactions even further, Maxim Power will introduce an automatic share purchase plan (ASPP) starting on the same day as the NCIB. This plan is designed to enable the purchase of shares during periods when the Corporation typically refrains from market activity due to internal trading restrictions.

Benefits for Shareholders

Management believes that the market may not always reflect the intrinsic value of the shares, particularly at certain times. Hence, executing these purchases would ultimately benefit all shareholders by reducing the total number of outstanding shares and proportionately increasing the ownership stake of remaining shareholders.

Past Buyback Program Performance

This new NCIB follows the conclusion of a prior buyback program, which authorized Maxim to repurchase up to 2,526,477 shares. During this earlier program, the Corporation successfully bought back 312,904 shares at an average price of $4.36 each, showcasing its commitment to enhancing shareholder value.

The Future of Maxim Power

Headquartered in Calgary, Alberta, Maxim Power is recognized as one of the nation's leading independent power producers. The company's core asset is the 300 MW H.R. Milner Plant, a cutting-edge gas-fired power facility that debuted operations in late 2023. Looking ahead, Maxim Power is focused on projects in Alberta, including plans for further gas-fired and renewable energy developments.

Continued Innovation

Maxim Power's management is actively exploring additional opportunities in the energy sector, enhancing its portfolio with sustainable and innovative solutions that align with market trends and regulatory frameworks.

For any queries related to this announcement or company information, please reach out to:

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?

Maxim Power Corp. trades under the symbol "MXG" on the TSX.

When does the NCIB commence?

The normal course issuer bid is set to begin on September 16, 2024.

How many shares can Maxim Power repurchase?

Maxim Power is approved to repurchase up to 2,529,885 common shares under the NCIB.

What was the average price of shares bought back in the previous program?

In the previous buyback program, Maxim Power repurchased shares at a weighted average price of $4.36 each.

What type of projects is Maxim Power focused on?

Maxim Power is focused on power projects, currently emphasizing gas-fired generation and wind energy initiatives in Alberta.

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/

Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data shapes the opinions presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. The author does not guarantee the accuracy, completeness, or timeliness of any material, providing it "as is." Information and market conditions may change; past performance is not indicative of future outcomes. If any of the material offered here is inaccurate, please contact us for corrections.