Alamos Gold Announces Renewal of Normal Course Issuer Bid
TORONTO, Dec. 18, 2020 (GLOBE NEWSWIRE) -- Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today announced that it has filed with and received acceptance from the
Toronto Stock Exchange (“TSX”), for a Notice of Intention to make a Normal Course Issuer Bid permitting Alamos to purchase for cancellation up to 35,145,504 Class A Common Shares (“Common Shares”),
representing 10% of the Company’s public float of the Common Shares as of December 14, 2020, being 351,455,040 Common Shares. As at December 14, 2020, there were 392,727,670 Common Shares issued
Alamos may purchase Common Shares under the Normal Course Issuer Bid over the next twelve-month period beginning December 24, 2020 and ending December 23, 2021. Any purchases made under the Normal Course Issuer Bid will be effected through the facilities of the TSX, alternative Canadian trading systems and/or the New York Stock Exchange. The maximum number of Common Shares that Alamos may purchase on the TSX on a daily basis, other than block purchase exceptions, is 273,548 Common Shares.
The price for any repurchased Common Shares will be the prevailing market price at the time of the purchase. All Common Shares purchased by Alamos will be cancelled. Purchase and payment for the Common Shares will be made by Alamos in accordance with the requirements of the TSX and applicable securities laws.
A Normal Course Issuer Bid is being undertaken as the Company and its Board of Directors believe the price of its Common Shares from time to time to be not reflective of the underlying value of the Company. The Company believes it is advantageous to its shareholders to engage in repurchases of Common Shares, from time to time, when they are trading at prices which reflect a discount from their value by increasing the proportionate share of ownership of the Company to remaining shareholders. Under its previous Normal Course Issuer Bid which commenced on December 24, 2019 and will terminate on December 23, 2020, Alamos sought the purchase of up to 28,734,677 Common Shares and has purchased and cancelled 1,133,561 Common Shares of the Company through open market purchases through the facilities of the TSX and the New York Stock Exchange at a weighted average price paid per Common Share of C$6.99.