GFL Environmental Inc. (GFL) Renews NCIB for 12-Month Period Beginning May 12, 2023
May 10, 2023
GFL Environmental Inc. (GFL) has announced that the Toronto Stock Exchange (TSX) has accepted the company's notice of intention to renew its normal course issuer bid (NCIB) for the 12-month period beginning on May 12, 2023, and ending no later than May 11, 2024.
The NCIB is a program that allows a publicly traded company to purchase its shares on the open market, through privately negotiated transactions, or other means approved by securities regulatory authorities. GFL's NCIB will be conducted through the facilities of the TSX and the New York Stock Exchange (NYSE) or alternative Canadian trading systems, if eligible.
Under the NCIB, GFL can repurchase a maximum of 17,867,120 subordinate voting shares, which represents 5% of the issued and outstanding shares. As of May 2, 2023, GFL had 357,342,405 subordinate voting shares issued and outstanding. All subordinate voting shares repurchased under the NCIB will be cancelled.
According to Patrick Dovigi, Founder and CEO of GFL, the company believes that the market price of its shares does not always reflect the underlying value of its business and growth prospects. While the company's capital allocation plans do not usually include share repurchases, in the right conditions, GFL believes that share repurchases could be an opportunistic and appropriate use of its available excess cash on hand.
According to TSX rules, GFL can only repurchase a maximum of 66,937 subordinate voting shares per day, which represents 25% of the average daily trading volume on the TSX from November 1, 2022, to April 30, 2023. However, the company can purchase a block of subordinate voting shares once a week, which may exceed the daily limit. The maximum number of shares that can be purchased per day on the NYSE will be 25% of the average daily trading volume for the four calendar weeks preceding the purchase date, subject to certain exceptions for block purchases.
Members of LevelFields received the alert of this event on May 10, 10:32 AM ET
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