First Majestic Silver Corp. (TSX:FR) announced that its board of directors has approved the extension of its share repurchase program pursuant to a normal course issuer bid in the open market through the facilities of the Toronto Stock Exchange (“TSX”) or alternative Canadian market places over the next 12 months.
As quoted in the press release:
In order to implement the Share Repurchase, First Majestic has received TSX approval of its notice of intention to make a normal course issuer bid. The notice provides that First Majestic may, during the 12 month period commencing on March 21, 2018 and ending on or before March 20, 2019, purchase up to 8,286,401 common shares through the facilities of the TSX and alternative Canadian marketplaces.
In accordance with TSX rules, daily purchases made by the company on the TSX will not exceed 183,231 common shares, or 25 percent of First Majestic’s average daily trading volume of 732,923 common shares on the TSX for the six calendar months preceding the date of the acceptance of the original notice, subject to certain prescribed exemptions.
The company repurchased 230,000 common shares for cancellation for a volume weighted average price of CDN$7.00 under its prior normal course issuer bid which commenced on March 21, 2017 and expires on March 20, 2018.
First Majestic will make no purchases of common shares other than open-market purchases. The price that the company will pay for any common shares will be the prevailing market price of such shares at the time of acquisition. All common shares purchased pursuant to the Share Repurchase will be cancelled.
The company believes that, from time to time, the market price of its common shares may not fully reflect the underlying value of the company’s business and its future business prospects. The company believes that at such times the purchase of common shares would be in the best interests of the company. Such purchases are expected to benefit all remaining shareholders by increasing their equity interest in the company.