Elemental Altus Royalties Corp. Announces Normal Course Issuer Bid
Vancouver, British Columbia – Elemental Altus Royalties Corp. (TSXV: ELE) (OTCQX: ELEMF) (“Elemental Altus” or the “Company”), a leading mineral royalty company, recently announced that the TSX Venture Exchange (the “Exchange”) has accepted its Notice of Intention to implement a Normal Course Issuer Bid (“NCIB”). This bid will allow the Company to repurchase up to 12,288,129 common shares (the “Shares”) in the capital of Elemental Altus, representing up to 5% of the issued and outstanding Shares as of March 18, 2025.
What is a Normal Course Issuer Bid?
A Normal Course Issuer Bid, also known as a “NCIB” or “share buyback,” is a program that enables a publicly traded company to buy back its own shares from the market, subject to certain conditions and limitations. This is typically done to reduce the number of outstanding shares, thereby increasing the value of each remaining share.
Why is Elemental Altus Implementing an NCIB?
Elemental Altus did not disclose the specific reasons for the NCIB in its press release. However, in its filing with the Canadian Securities Administrators, the Company stated that the “purchase of the Shares would be considered to be an appropriate use of available funds, having regard to the Company’s financial position and other investment opportunities available to the Company.”
Effect on Elemental Altus Shareholders
For existing shareholders, an NCIB can have several potential positive effects:
- Increased Earnings Per Share: When a company repurchases its own shares, the number of outstanding shares is reduced, which in turn increases the earnings per share (EPS) for the remaining shares. This can lead to higher stock prices and increased value for existing shareholders.
- Dilution Protection: An NCIB can help protect shareholders from dilution, which occurs when a company issues new shares, thereby reducing the percentage ownership of existing shareholders. By buying back shares, a company can reduce the number of outstanding shares and maintain its existing shareholder base.
- Sign of Confidence: An NCIB can be seen as a positive sign of management confidence in the company’s future prospects.
Effect on the World
The impact of an NCIB on the world at large is less direct, but it can contribute to the overall health and stability of capital markets:
- Market Liquidity: Share buybacks can help maintain market liquidity by reducing the number of shares available for trading, making it easier for investors to buy and sell shares at reasonable prices.
- Economic Growth: Companies that are profitable enough to buy back their own shares are typically contributing to economic growth and job creation.
- Investor Confidence: A company’s decision to buy back its own shares can boost investor confidence, leading to increased demand for the stock and potentially higher stock prices.
Conclusion
Elemental Altus’ decision to implement an NCIB is a positive sign for the Company and its shareholders, potentially leading to increased earnings per share, dilution protection, and a boost in confidence. Additionally, the impact on the world at large can contribute to market liquidity, economic growth, and investor confidence. The NCIB will be effective from March 25, 2025, and will conclude on March 24, 2026.
For more information about Elemental Altus and its business activities, please visit the Company’s website at https://elementalaltus.com/.
