Microbix Announces Initiation of Normal Course Issuer Bid
Microbix to Repurchase up to 5% of its outstanding shares over 12 months
MISSISSAUGA, CANADA, September 28, 2022 – Microbix Biosystems Inc. (TSX: MBX, OTCQX: MBXBF, Microbix®), a life sciences innovator, manufacturer, and exporter, announces the initiation of a Normal Course Issuer Bid (“NCIB”) program for the repurchase and cancellation of outstanding common shares.
Specifically, the NCIB enables Microbix to repurchase up to 6,949,568 Common Shares ("Shares"), that being approximately five percent (5%) of the 138,991,374 Shares outstanding as at September 26, 2022, through the facilities of the Toronto Stock TSX (“TSX”) over a 12 month period starting on October 3, 2022 and ending on October 2, 2023. The actual number of Shares repurchased pursuant to the NCIB will be determined by management.
The NCIB has been approved by Microbix’s Board of Directors; however it is subject to acceptance by the TSX and, if accepted, will be conducted in accordance with the applicable rules and policies of the TSX and Canadian securities laws. Under the NCIB, Shares may be repurchased in open market transactions on the TSX, or by such other means as may be permitted by the TSX and applicable Canadian securities laws. Microbix will pay the prevailing market price at the time of its Share repurchases.
Pursuant to TSX rules and policies, the maximum number of Shares that may be repurchased in one day pursuant to the NCIB will be the greater of 1,000 or 11,532 (25% of the average daily trading volume (“ADTV”) of the Shares on the TSX for the most recently completed six calendar months, subject to certain prescribed exceptions). The ADTV on the TSX for the six calendar months ended August 31, 2022 is 46,128.
Microbix has entered into a pre-defined automatic securities purchase plan with its broker, Haywood Securities Inc., to allow for the repurchase of Shares at times when it ordinarily would not be active in the market due to Microbix’s internal trading blackout periods, insider trading rules, or otherwise. Any such plans will be adopted in accordance with applicable Canadian securities laws. Outside of such restricted periods, the timing of repurchases will be determined by Microbix management. Decisions regarding repurchases will be based on market conditions, Share price, best uses of available cash, and other factors. The funding for any repurchases pursuant to the NCIB will be financed out of working capital and all Shares will be repurchased for cancellation. Microbix may also use its NCIB to acquire Shares pursuant to the exercise of stock options in order to offset the dilutive effect of options that have been exercised.
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The Board of Directors believes Microbix’s underlying value is not reflected in the current market price of its Shares. As a result, depending upon future price movements and other factors, the Board believes that the repurchase of Shares is an appropriate use of corporate funds and in the best interests of Microbix and its shareholders. Furthermore, the NCIB is expected to benefit persons who continue holding Shares by increasing their proportionate equity interest in Microbix as the repurchased Shares are cancelled.
A copy of Microbix’s notice of the NCIB to the TSX may be obtained by any shareholder without charge, by contacting Jim Currie, the Company's Chief Financial Officer.
