MONTREAL, Jan. 06, 2022 (GLOBE NEWSWIRE) -- Supremex Inc. (“Supremex” or the “Company”) (TSX: SXP), a leading North American manufacturer and marketer of envelopes and a growing provider of paper-based packaging solutions, today announced the reinstatement of its quarterly dividends after having suspended them in the early months of the pandemic.
On January 5, 2022, the Board of Directors also declared a dividend of $0.025 per common share, payable on February 15, 2022, to the shareholders of record at the close of business on January 31, 2022. Starting in the first quarter of 2022, the Board will reinstate its quarterly dividends of $0.025 per common share. On an annual basis, this represents a dividend of $0.10 per common share.
“We reviewed our capital allocation strategy through the lens of sustained year-over-year revenue and EBITDA growth, a substantial reduction in leverage over the past several quarters and an increasingly favorable outlook in the business. We believe a balanced approach to capital deployment including capex, acquisitions, share buybacks and dividends is an attractive combination for shareholders,” stated Stewart Emerson, President & CEO of Supremex.
This dividend is designated as “eligible” dividend for the purpose of the Income Tax Act (Canada) and any similar provincial legislation. Note that the declaration of dividends remains subject to the discretion of the Board of Directors and may vary depending on, among other things, Supremex’ earnings, financial requirements, compliance to the covenants of its Secured Credit Facility and the satisfaction of the solvency tests imposed by the CBCA for the declaration and payment of dividends and other conditions existing at such future time.