Methanex announces 5% share buyback program
VANCOUVER, British Columbia, September 16, 2021 (GLOBE NEWSWIRE) – Methanex Corporation (the “Company” or “Methanex”) (TSX: MX) (NASDAQ: MEOH) today announced that its board of directors has approved a issuer in the normal course of its activities Offer (“OPRA”) by which the Company will purchase for cancellation up to 3,810,464 ordinary shares (“Shares”), representing 5% of the 76,209,280 shares issued and outstanding as of September 16 2021., 2021 and end no later than September 23, 2022. Purchases will be made from time to time at the then prevailing market price of the Shares and all Shares purchased under the public tender offer will be canceled.
John Floren, President and CEO of Methanex, said: “We are delighted to announce a new share buyback program that builds on our long history of returning excess cash to shareholders. Our strong financial position and a still robust methanol pricing environment allow us to generate significant cash flow to maintain our business, finance the remaining investment costs for our Geismar 3 project and return excess cash to shareholders. “
Purchases under the NCIB will be made on the open market through the facilities of the NASDAQ Global Select Market (“NASDAQ”) and alternative trading systems in the United States in accordance with Rule 10b-18 of the US Securities Exchange Act 1934. With certain exceptions for bulk purchases, daily program redemptions through the NASDAQ and alternative trading systems in the United States will not exceed 25% of the Company’s average daily trading volume for the four week period preceding the date of purchase. The Company has entered into an automatic securities purchase plan with its broker with respect to purchases to be made under the program.
Methanex is a Vancouver-based publicly traded company and the world’s largest producer and supplier of methanol to major international markets. Methanex shares are listed on the Toronto Stock Exchange in Canada under the symbol “MX” and on the NASDAQ Global Select Market in the United States under the symbol “MEOH”. Methanex can be viewed online at www.methanex.com.
FORWARD-LOOKING INFORMATION WARNING
This press release contains certain forward-looking statements with respect to us and our industry. These statements relate to future events or our future performance. All statements other than statements of historical fact are forward-looking statements. Statements that include the word “will” or other comparable terminology and similar statements of a future or forward-looking nature identify forward-looking statements. More specifically and without limitation, all statements regarding the following are forward-looking statements:
- The expected cash flows, cash balances, earning capacity, debt levels and share price of Methanex,
- Methanex’s financial strength and ability to meet its future financial commitments, and
- Distribution strategy to Methanex shareholders and expected distributions to shareholders.
We believe we have a reasonable basis for making such forward-looking statements. The forward-looking statements contained in this document are based on our experience, our perception of trends, current conditions and expected future developments and other factors. Certain important factors or assumptions have been applied in drawing the conclusions or making the forecasts or projections that are included in these forward-looking statements, including, without limitation, future expectations and assumptions regarding the following:
- supply, demand and price of methanol, methanol derivatives, natural gas, coal, petroleum and petroleum derivatives,
- operating rate of our facilities,
- operating costs, including natural gas feed charges and logistics costs, investment costs, tax rates, cash flows, exchange rates and interest rates,
- the expected schedule and capital cost of our Geismar 3 project, and
- global and regional economic activity (including industrial production levels) and GDP growth.
However, forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated by forward-looking statements. Risks and uncertainties primarily include those associated with the production and marketing of methanol and the successful completion of large capital expenditure projects in various jurisdictions, including, but not limited to:
- conditions in the methanol industry and other industries, including fluctuations in the supply, demand and price of methanol and its derivatives, including the demand for methanol for energy purposes,
- the price of natural gas, coal, petroleum and petroleum derivatives,
- our ability to obtain natural gas feedstocks on commercially acceptable terms to support current operations and future growth opportunities,
- the ability to carry out business initiatives and strategies,
- actions of competitors, suppliers and financial institutions,
- global economic conditions and
- the other risks described in our 2020 annual management report and our 2021 second quarter management report.
In light of these and other factors, investors and other readers are cautioned not to place undue reliance on forward-looking statements. They do not replace the exercise of one’s own diligence and judgment. The results anticipated in forward-looking statements may not occur and we do not undertake to update forward-looking statements, except as required by applicable securities laws.
For more information, contact:
Director, Investor Relations
604 661-2600 or toll free: 1 800 661 8851