Cargojet Announces Normal Course Issuer Bid with Voting Shares

Quarterly dividend plus 10%

MISSISSAUGA, ON, May 2, 2022 /CNW/ – Cargojet Inc. (“Cargojet” or the “Company”) (TSX: TCJ) today announced that the Toronto Stock Exchange (“TSX“) has accepted its notice of intention to make a normal course issuer bid (“ORCN“) for a portion of its Common Voting Shares and Variable Voting Shares (together, the “Shares”). Cargojet also announced today that its Board of Directors has approved a 10% increase in its quarterly dividend. The next quarterly dividend of $0.2860 per Share will be declared in the ordinary course of June 2022.

Normal Course Issuer Bid

The Company has set up the ORCN in respect of the Shares because it believes that from time to time over the next twelve months the market price of the Shares may not fully reflect the underlying value of the Shares and that at such times the Purchasing the Shares would be in the best interests of the Company. Any purchase made under the ORCN will be done by Cargojet subject to favorable market conditions at the prevailing market price at the time of acquisition through the facilities of the TSX and/or other Canadian commercial systems.

According to reviews, Cargojet is allowed to buy up to $15,500,000 (the “Aggregate Limit”) of Shares in the aggregate during the twelve month period commencing May 4, 2022 and ending May 3, 2023. The aggregate limit represents the maximum amount authorized under its credit facilities and the company may reach this aggregate limit by repurchasing the shares when suitable opportunities arise from time to time. The Company intends to acquire up to a maximum of 155,000 shares, representing approximately 0.89% of its outstanding shares.

Like a April 28, 2022, there were 17,324,258 Shares outstanding. Under the ORCNother than purchases made under global exemptions, Cargojet may purchase up to 19,583 Shares on the TSX on any trading day, which represents approximately 25% of the average daily trading volume of such Shares on the TSX for the last six calendar months ended before the TSX acceptance of the opinion of ORCN. All Shares purchased under the ORCN will be cancelled.

Automatic share purchase plan

In connection with the issuer bid, the Company has entered into an automatic share purchase plan (“ASPP”) with a designated broker. Pursuant to the ASPP, the Company has instructed the Designated Broker to make purchases under the OPRCA in accordance with the terms of the ASPP. Such purchases will be determined by the Designated Broker in its sole discretion based on purchase parameters established by Cargojet in accordance with the rules of the TSX, applicable securities laws and the terms of the ASPP. The ASPP has been pre-cleared by the TSX and will be implemented today. All purchases made under the ASPP will be included in the calculation of the number of shares purchased under the tender offer.

About Cargojet

Cargojet is from Canada leading provider of premium time-sensitive air cargo services to all major cities across North America, providing dedicated, ACMI and international charter services and hauls over 25,000,000 pounds of cargo per week. Cargojet operates its network with its own fleet of 31 cargo aircraft.

Notice on Forward-Looking Statements

Certain statements contained herein constitute “forward-looking statements”, including with respect to the Company’s intention to purchase shares pursuant to the Tender Offer and the ASPP, as described below. above, the timing and benefits of such purchases, and the increase in the Company’s quarterly dividend. Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the company. Forward-looking statements may include words such as “anticipates”, “intends”, “anticipates”, “should”, “estimates”, “expects”, “believes”, “indicates”, “targets “, “suggests” and other expressions. These forward-looking statements are based on current expectations and involve various risks and uncertainties. Reference should be made to the Company’s most recent Annual Information Form filed with the Canadian securities regulators, as well as its most recent consolidated financial statements and notes thereto and related MD&A, for a summary of the principal risks . Actual results may differ materially from expectations if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove to be inaccurate. Forward-looking statements contained or incorporated by reference in this press release represent Cargojet’s expectations as of the date of this press release (or as otherwise stated) and are subject to change after such date. However, Cargojet disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. In the event that Cargojet updates any forward-looking statement, no inference should be drawn that Cargojet will make additional updates with respect to such statement, related matters or any other forward-looking statements.

The TSX has not reviewed and accepts no responsibility for the adequacy or accuracy of this statement.

SOURCE Cargojet Inc.

For further information: Pauline Dhillon, Chief Corporate Officer, Tel: (905) 501-7373, [email protected]

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