Microbix Biosystems Introduces Share Buyback Program
Microbix Biosystems Inc. (TSX: MBX, OTCQX: MBXBF) has officially announced that it will initiate a Normal Course Issuer Bid ("NCIB") aimed at the repurchase and cancellation of its outstanding common shares. This strategy reflects the company's commitment to enhancing shareholder value.
Details of the Normal Course Issuer Bid
Under the provisions of the NCIB, Microbix plans to buy back up to 6,726,560 common shares, representing approximately five percent of the 134,531,203 shares that were outstanding as of November 30, 2024. The share repurchases will occur through the Toronto Stock Exchange (TSX) and alternative trading systems and are scheduled to run for a 12-month period beginning on December 9, 2024, concluding on December 8, 2025.
Operational Framework of the Buyback
The NCIB received approval from Microbix’s Board of Directors and complies with relevant rules and policies set by the TSX and Canadian securities frameworks. Share repurchases will be made at the prevailing market price at the time of the buyback transactions.
Regulatory Compliance and Limitations
In adherence to TSX regulations, the maximum number of shares that can be acquired in a single day through the NCIB is capped at 12,373, which is equivalent to 25% of the average daily trading volume (ADTV) for the six months ending November 30, 2024. This ADTV was recorded at 49,493 shares, which gives Microbix flexibility to engage in block trades for larger transactions when necessary.
Strategic Purpose Behind the Share Repurchase
The Board believes that the true value of Microbix’s shares is not accurately reflected in the market. With this buyback program, the company aims to use its available resources effectively to increase the equity stake for existing shareholders by reducing the number of shares in circulation.
Balancing Market Conditions and Financial Planning
The decision on when to repurchase shares will be strategically assessed based on current market conditions, share prices, and other financial factors. This dynamic approach allows Microbix to adjust its repurchase strategy as required, ensuring alignment with broader financial goals and shareholder interests.
About Microbix Biosystems Inc.
Microbix Biosystems Inc. is a life sciences company dedicated to creating proprietary biological products for improving human health. With a talent pool of over 100 employees, the company is generating over C$2.0 million in monthly sales, showcasing its growth trajectory in the global diagnostics sector.
The company specializes in providing essential components for the diagnostics industry, such as antigens for immunoassays and quality assessment products (QAPs™) which support laboratory proficiency testing and ensure the accuracy of clinical diagnostics. Microbix's antigens are utilized by numerous diagnostics manufacturers, while QAPs are distributed to clinical laboratories and accreditation entities across more than 30 countries.
Innovation and Regulatory Compliance
In addition to its existing offerings, Microbix leverages its biological expertise to develop proprietary products such as Kinlytic® urokinase for treating blood clots and DxTM™, a viral transport medium designed for effective sample preservation in diagnostic testing. Compliance with stringent international standards such as ISO 9001 & 13485 and various health authority registrations further underlines Microbix’s commitment to quality and safety.
Contact Information
For additional information, shareholders are encouraged to contact Microbix's Chief Financial Officer, Jim Currie, who is available via telephone. Additional inquiries can be directed towards the company’s dedicated Investor Relations representatives.
Frequently Asked Questions
What is the purpose of the Normal Course Issuer Bid (NCIB)?
The NCIB allows Microbix to repurchase and cancel its shares to enhance shareholder value and reflect the company's true market potential.
When will the NCIB take place?
The NCIB initiates on December 9, 2024, and will continue until December 8, 2025, or until the company completes its planned purchases.
How will the repurchases be conducted?
Repurchases will be made through the TSX and alternative trading systems, following all regulatory guidelines.
Why does Microbix believe the current share price is undervalued?
The company's Board believes that the intrinsic value of Microbix shares is not accurately reflected in the current market prices.
Who should I contact for more information regarding Microbix?
Inquiries can be made to Jim Currie, the Chief Financial Officer, or through their Investor Relations at Adelaide Capital Markets.
