Resolute announces share repurchase program

Seth Kursman

Resolute Forest Products Inc. recently announced that its board of directors authorized the repurchase of up to $100 million or 10 million of its common shares, whichever occurs first. Repurchase transactions will be funded using the company’s sources of liquidity.

Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products, and papers, marketed in over 50 countries. The company owns or operates some 40 facilities and power generation assets in the United States and Canada. Resolute has third-party certified 100% of its managed woodlands to internationally recognized sustainable forest management standards. The Resolute Forest Products trade shares under the stock symbol RFP on both the New York Stock Exchange and the Toronto Stock Exchange.

“Today’s announcement follows the recent completion of the share repurchase program announced in March 2020, under which we repurchased 11.5 million shares for $78.3 million, representing 15% of the outstanding shares,” said Remi G. Lalonde, president and CEO. “This new program will allow us to continue to act opportunistically to return capital to shareholders when conditions are right. We remain committed to a balanced approach to capital allocation, using our free cash flow to generate value for shareholders, build a stronger company and drive sustainable economic activity in the communities where we operate.”

Under the new share repurchase program, the company is authorized to repurchase from time to time shares of its outstanding common stock on the open market or in privately negotiated transactions in the United States. The timing and amount of stock repurchases will depend on various factors, including market conditions and corporate and regulatory considerations. The share repurchase program may be suspended, modified, or discontinued at any time, and the company has no obligation to repurchase any amount of its common stock under the program. The repurchase program has no set expiration date. The company intends to make all repurchases in compliance with applicable regulatory guidelines and administer the plan according to applicable laws, including Rule 10b-8 of the Securities Exchange Act of 1934, as amended.

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