Off The Wire
First Majestic extends share-repurchase program
The board of directors has approved the extension under a normal course issuer bid in the open market through the Toronto Stock Exchange or alternative Canadian marketplaces over the next 12 months, the company said. First Majestic has proposed repurchasing up to 10 million shares, which represents 4.77% of the outstanding total as of March 13.
Based on TSX rules, daily purchases by the company on the exchange will not exceed 198,009 shares, or 25% of First Majestic’s average daily trading volume of 792,037 shares for the six months prior to the date of acceptance of the original notice, subject to certain exemptions, First Majestic said.
Under its prior program, First Majestic repurchased 275,000 shares for cancellation at a volume-weighted average price of C$8.56 as of March 17, the company said. Under this prior normal course issuer bid that began March 21, 2019 and expires on March 20, the company had approval to purchase up to 5 million shares.
First Majestic will pay the prevailing market price for shares at the time of the purchase.
“The company believes that, from time to time, the market price of its common shares may not fully reflect the underlying value of the company’s business and its future business prospects,” First Majestic said in a prepared statement. “The company believes that at such times, the purchase of common shares would be in the best interests of the company. Such purchases are expected to benefit all remaining shareholders by increasing their equity interest in the company.”