Algoma Central Corporation Announces Preliminary Results of Substantial Issuer Bid
Algoma Central Corporation (“Algoma” or the “Company”) (TSX:ALC) a leading provider of marine transportation services today
announced the preliminary results of its “modified Dutch auction” substantial issuer bid (SIB). Under the SIB, Algoma offered to
purchase for cancellation up to $20 million of its common shares (the “Shares”) from Shareholders for cash. The SIB expired at
11:59 p.m. (Toronto time) on December 15, 2017.
Based on the preliminary count by AST Trust Company (Canada), as depositary for the SIB, Algoma expects to take up and pay for
approximately 361,418 Shares at a price of $14.75 per Share under the SIB, representing an aggregate purchase price of $5.3 million
and 0.9% of the total number of Algoma’s issued and outstanding Shares before giving effect to the SIB.
The full details of the SIB are described in the issuer bid circular dated November 10, 2017, as well as the related letter of
transmittal and notice of guaranteed delivery, copies of which were filed and are available on SEDAR at www.sedar.com.
As the total number of Shares tendered was substantially less than the total that could have been acquired by the Company under
the terms of the SIB, all Shares validly deposited and not withdrawn prior to the expiry of the SIB will be acquired at the maximum
purchase price offered under the SIB and no pro-ration will be required.
After giving effect to the SIB, Algoma expects to have 38,552,315 Shares issued and outstanding.
“We are satisfied with the response to the offer. The majority of our shareholders have chosen to retain their common shares,
indicating to us that they see further growth potential for their investment in the Company,” said Ken Bloch Soerensen, President
and CEO of Algoma. “We will continue to review options to enhance the value of the Company’s common shares,” Mr. Soerensen
added.
The number of Shares to be purchased and the purchase price under the SIB are preliminary. Final results will be determined
subject to confirmation by the depositary of the proper delivery of the Shares validly tendered and not withdrawn. Upon take up and
payment of the Shares purchased, Algoma will release the final results.
This press release is for informational purposes only and does not constitute an offer to buy or the solicitation of an offer to
sell Algoma’s Shares.
About Algoma Central
Algoma Central Corporation is a publicly traded company which operates the largest Canadian flag fleet of dry and liquid bulk
carriers on the Great Lakes - St. Lawrence Waterway, including self-unloading dry-bulk carriers, gearless dry bulk carriers and
product tankers. Algoma also owns ocean self-unloading dry-bulk vessels operating in international markets. Algoma has begun an
expansion into international short-sea markets through it 50% interests in NovaAlgoma Cement Carriers and NovaAlgoma Short-Sea
Carriers. Algoma Central trades on the Toronto Stock Exchange under the symbol “ALC.” For more information, please visit www.algonet.com.
Forward-Looking Statements
Certain information included in this press release is forward-looking, within the meaning of applicable securities laws. Much of
this information can be identified by looking for words such as “believe”, “expects”, “expected”, “will”, “intends”, “projects”,
“anticipates”, “estimates”, “continues” or similar words. In particular, this press release includes forward-looking statements
pertaining to the terms and conditions of the SIB, including the aggregate amount of Shares to be purchased for cancellation under
the SIB, the final purchase price and the approximate number of Shares expected to be issued and outstanding after completion of
the SIB. Algoma believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given
that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.
Forward-looking statements are based on current information and expectations that involve a number of risks and uncertainties,
which could cause actual results to differ materially from those anticipated. Forward-looking statements contained in this press
release are made as of the date hereof and are subject to change. Algoma assumes no obligation to revise or update forward looking
statements to reflect new circumstances, except as required by law.
Algoma Central Corporation
Ken Bloch Soerensen, 905-687-7885
President and Chief Executive Officer
or
Peter D. Winkley, CPA, CA, 905-687-7897
Chief Financial Officer
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