OKOTOKS, AB, June 14 /PRNewswire-FirstCall/ - (TSX-MTL) Mullen Group Ltd. ("Mullen" or the "Company") announced today that the Toronto Stock Exchange ("TSX") has accepted Mullen's Notice of Intention to commence a Normal Course Issuer Bid (the "Bid") to purchase, from time to time, as it considers advisable, up to 7,330,594 common shares (which is equal to 10% of the "public float" of 73,305,937 common shares) on the open market through the facilities of the TSX.
The Bid follows the expiration of Mullen's previous Bid which expired on June 14, 2010. During the course of the previous Bid, Mullen repurchased for cancellation 1,902,475 common shares of the Company, at an average purchase price of $14.34 per common share.
The number of common shares that can be purchased pursuant to the Bid is subject to a daily maximum of 41,966 common shares (which is equal to 25% of the average daily trading volume of the common shares of Mullen from December 1, 2009 through to May 31, 2010). The price that Mullen will pay for any common share under the Bid will be the prevailing market price on the TSX at the time of such purchase. Common shares acquired under the Bid will be subsequently cancelled. Mullen currently has 78,714,105 common shares outstanding.
The Bid will commence on June 16, 2010 and will terminate on June 15, 2011 or such earlier time as the Bid is completed or terminated at the option of Mullen. A copy of the Form 12 - Notice of Intention to make a Normal Course Issuer Bid filed by the Company with the TSX can be obtained from the Company upon request without charge.
The Company has commenced the Bid because it believes that, from time to time, the market price of its securities will not properly reflect the underlying, intrinsic value of Mullen, and that, at such times, the purchase of common shares for cancellation will increase the proportionate interest of, and be advantageous to, all remaining shareholders.
Mullen is recognized as the largest provider of specialized transportation and related services to the oil and natural gas industry in western Canada and as one of the leading suppliers of trucking and logistics services in Canada - two sectors of the economy in which Mullen has strong business relationships and industry leadership. Additional information is available on our website at www.mullen-group.com.
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "objective", "will", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this press release contains forward looking statements and information concerning the number of common shares to be purchased pursuant to the Bid and the cancellation of common shares purchased pursuant to the Bid.
The forward-looking statements and information are based on certain key expectations and assumptions made by Mullen, including the timing of receipt of regulatory approval. Although Mullen believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because Mullen can give no assurance that they will prove to be correct.
Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the current financial markets, the service and energy industry in general; and the failure to obtain required regulatory approvals. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release concerning these times.
Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the operations or financial results of Mullen are included in reports of Mullen on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) of Mullen. The forward-looking statements and information contained in this press release are made as of the date hereof and Mullen undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities law. Mullen relies on litigation protection for "forward-looking" statements.
SOURCE Mullen Group Ltd.