CALGARY, AB , Nov. 27, 2024 /PRNewswire-HISPANIC PR WIRE/ — Parkland Corporation (“Parkland,” “we,” “our,” or the “Company”) (TSX: PKI) announced today that the Toronto Stock Exchange (“TSX” ) has accepted the company’s notice of intent to implement a normal course issuer bid (“NCIB”).
Pursuant to the NCIB, the Company may redeem for cancellation a maximum of 13,814,717 shares of the Company’s common stock (the “Shares”), representing 10% of the public outstanding (as determined by the TSX) on November 18, 2024. On November 18, 2024, Parkland had 173,781,684 shares issued and outstanding. The NCIB will commence on December 1, 2024 and will terminate on the earlier of (i) November 30, 2025, (ii) the Company purchasing a maximum of 13,814,717 shares, and (iii) the Company terminating the NCIB.
NCIB aims to increase Parkland’s continued return of capital to shareholders through dividends. Parkland believes that the market price of the shares may not accurately reflect their value, from time to time. Accordingly, the purchase of cancellation shares under NCIB may represent an attractive investment opportunity to enhance shareholder value, consistent with Parkland’s capital allocation framework.
Purchases under NCIB will be made through the facilities of the TSX or alternative trading systems in Canada at the prevailing market price at the time of purchase. In accordance with TSX rules, any daily repurchase (other than pursuant to a block purchase exception as determined by the TSX) under the NCIB will be limited to a maximum of 136,675 shares, representing 25% of the average daily trading volume on the TSX of 546,700 for the six months ended October 31, 2024.
In connection with NCIB, the Company has entered into an automatic share purchase plan (“ASPP”) with its designated broker to permit the purchase of shares during certain default supply cutoff periods and other periods during which The company will not usually be allowed to buy back shares. Purchases under the ASPP will be determined by the designated broker in its sole discretion, based on purchase parameters established by Parkland in accordance with TSX rules, applicable securities laws and the terms of the ASPP. Outside of the blackout periods, shares may be redeemed under NCIB based on management’s discretion, in accordance with TSX rules and applicable securities laws. All purchases made under the ASPP will be included in the calculation of the number of shares purchased under the NCIB. The ASPP has been pre-cleared by the TSX and will be effective on December 1, 2024, concurrent with the commencement of the NCIB.
The NCIB continues the Company’s existing NCIB (“Existing NCIB”). Pursuant to the existing NCIB, the Company has approval from the TSX to repurchase up to 14,056,984 shares from December 1, 2023 to November 30, 2024. Under the existing NCIB, the Company has purchased 3,107,038 shares in the weighted average open market. price of $42.6734 per share.
There can be no assurance as to the exact number of shares that will be purchased under the NCIB, if any. Parkland may terminate purchases under the NCIB at any time, subject to compliance with applicable regulatory requirements.
Forward-looking statements
Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this release, the words “expect,” “will,” “may,” “will,” “believe,” “continue,” “follow” and similar expressions are intended to identify forward-looking statements. In particular, this release contains forward-looking statements regarding, among other things, NCIB and ASPP, potential stock purchases under NCIB and ASPP, NCIB’s anticipated benefits, including increased stockholder value and incremental returns. capital to shareholders and Parkland’s business strategies and objectives.
These statements involve known and unknown risks, uncertainties and other factors that could cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct, and such forward-looking statements contained in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this release. Parkland undertakes no obligation to publicly update or revise any forward-looking statements, except as required by securities law. Actual results may differ materially from those anticipated in these forward-looking statements as a result of numerous risks, assumptions and uncertainties including, but not limited to: failure to obtain final approval of the NCIB and ASPP from the TSX; failure to realize the anticipated benefits of NCIB; failure to make purchases under NCIB, including under ASPP; general economic, market and business conditions; Parkland’s ability to execute its business strategies, objectives and initiatives, including, without limitation, their completion, financing and timing, realizing the benefits thereof and meeting our objectives and commitments with respect thereto; competitive action by other companies; refining and marketing margins; ability of suppliers to meet commitments; actions by governmental and other regulatory authorities, including, but not limited to, increased taxes or restricted access to markets; changes and developments in environmental and other regulations; and other factors, many of which are beyond Parkland’s control. See also the risks and uncertainties described in “Cautionary Statement Regarding Forward-Looking Information” and “Risk Factors” included in Parkland’s Annual Information Form dated February 27, 2024, and “Forward-Looking Information” and “Risk Factors ” included in the third quarter. 2024 MD&A dated October 30, 2024 and fourth quarter 2023 MD&A dated February 27, 2024, each filed on SEDAR+ and available on Parkland’s website at www.parkland.ca. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
About Parkland Corporation
Parkland is an international fuel distributor, marketer and retailer with operations in 26 locations across the Americas. We serve over a million customers every day. Our retail network meets the fuel and convenience needs of everyday consumers. Our commercial operations provide industrial fuels to businesses so they can better serve their customers. In addition to meeting our customers’ essential fuel needs, we offer a variety of choices to help them reduce their environmental impact. These include the sourcing, production and blending of renewable fuels, carbon and renewables trading, solar power and ultra-fast EV charging. With approximately 4,000 retail and commercial locations across Canada, the United States and the Caribbean region, we have developed supply, distribution and merchandising capabilities to accelerate business growth and performance.
Our strategy is focused on two pillars: our Customer Advantage and our Supply Advantage. Through Customer Advantage, we aim to be our customers’ first choice, cultivating their loyalty through proprietary brands, differentiated offerings, our extensive network, competitive pricing, reliable service and our compelling loyalty program. Our supply advantage is based on achieving the lowest cost to serve among independent fuel dealers and distributors in the hard-to-serve markets in which we operate, through our well-positioned assets, significant scale and capabilities deep supply and logistics. Our business is supported by our people and our values of safety, integrity, community and respect, which are deeply embedded in our organisation.
