CALGARY, March 22 /PRNewswire/ - Trimac Transportation Ltd. ("Trimac") (TSX :TMA ) announced today that the Toronto Stock Exchange ("TSX") has accepted Trimac's Notice of Intention to Make a Normal Course Issuer Bid (the "NCIB") to purchase for cancellation, from time to time, its class A common shares (the "Shares") through the facilities of the TSX or such other exchanges or marketplaces where there is a market for the Shares. Trimac intends to purchase for cancellation up to a maximum of 700,000 Shares, being approximately 3.48% of Trimac's issued and outstanding Shares on March 21, 2011. As of March 21, 2011, the total number of issued and outstanding Shares was 20,087,792 Shares. The price which Trimac will pay for any Shares purchased by it will be the prevailing market price of the Shares on the TSX or such other exchange or marketplace, as applicable, at the time of such purchase.
The NCIB will commence on March 25, 2011 and will terminate on March 24, 2012 or such earlier time as the NCIB is completed or terminated at the option of Trimac.
Concurrent with the implementation of the NCIB, Trimac has received approval to establish an automatic securities purchase plan (the "Plan") for the Shares. The Plan was established to provide standard instructions to a registered broker regarding how Trimac's Shares are to be repurchased under the NCIB. Accordingly, Trimac's broker may repurchase the Shares under the Plan on any trading day during the NCIB including during Trimac's self-imposed trading blackout periods. The Plan will commence immediately and terminate together with the NCIB. Trimac may otherwise vary, suspend or terminate the Plan only if it does not have material non-public information and the decision to vary, suspend or terminate the Plan is not taken during a self-imposed trading blackout period. The Plan constitutes an "automatic plan" for purposes of applicable Canadian securities legislation and has been reviewed by the TSX.
Management of Trimac believes that, from time to time, the market price of the Shares may not fully reflect the underlying value of the Shares and that at such times the purchase of Shares would be in the best interests of Trimac. Such purchases will increase the proportionate interest of, and may be advantageous to, all remaining shareholders. In addition, the purchases by Trimac may increase liquidity to Trimac's shareholders wishing to sell their Shares.
The actual number of Shares that may be purchased and the timing of any such purchases will be determined by the broker under the Plan, subject to a maximum daily purchase limitation of 2,273 Shares which equals 25% of the average daily trading volume of 9,092 calculated in accordance with the TSX rules, except where purchases are made in accordance with "block purchase" exemptions under applicable TSX rules.
About Trimac: Trimac is Canada's largest provider of bulk trucking services with operations from coast to coast. In addition, through its National Tank Services division, Trimac performs repairs, maintenance and tank-trailer cleaning services for both the Trimac fleet and for third party commercial customers. Trimac also provides third party transportation logistics services in Canada and the United States through its wholly owned subsidiary Bulk Plus Logistics.
Note on Forward Looking Statements: This press release contains certain forward-looking statements relating, but not limited to, Trimac's strategies for creating shareholder value. Forward-looking information typically contains statements with words such as "anticipate", "believe", "expect", "plan", or similar words suggesting future outcomes. Such forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected, or implied by such forward-looking statements. Trimac disclaims any responsibility to update any such forward-looking statements except as required by law.
SOURCE Trimac Transportation Ltd.