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SAULT STE. MARIE, Ontario - Algoma Steel Group Inc. (NASDAQ:ASTL; TSX:ASTL) announced Friday it has filed a base shelf prospectus with the Ontario Securities Commission and a corresponding shelf registration statement with the U.S. Securities and Exchange Commission. The steel producer, currently trading at $7.14, has seen its stock decline over 28% year-to-date, according to InvestingPro data.
The filings will allow the Canadian steel producer to make offerings of various securities including common shares, preferred shares, debt securities, subscription receipts, units and warrants in Canada and the United States over a 25-month period.
Algoma stated it has "no present intention to pursue a capital raise in the near future" and filed the documents to maintain financial flexibility. The company plans to use the registration statement for potential exercises of currently outstanding warrants and the potential resale of certain previously registered securities.
The base shelf prospectus covers all Canadian provinces and territories except Quebec.
Algoma Steel, based in Sault Ste. Marie, Ontario, produces hot and cold rolled steel sheet and plate products. The company describes itself as the only producer of discrete plate products in Canada and operates a Direct Strip Production Complex for hot rolled sheet steel production.
The announcement comes as Algoma continues its transition to electric arc furnace steelmaking as part of its efforts to lower carbon emissions.
The information in this article is based on a press release statement from the company.
In other recent news, Algoma Steel Group Inc. reported its financial results for the first quarter of 2025, showing a mixed performance. The company posted an earnings per share (EPS) of -0.48, which exceeded the forecasted -0.6243, while revenue fell short of expectations, coming in at $517.1 million compared to the anticipated $589.53 million. Additionally, BMO Capital Markets downgraded Algoma Steel’s stock rating from ’Outperform’ to ’Market Perform’ and reduced its price target to Cdn$8.00 from Cdn$12.00, citing increased steel tariffs as a significant factor. Despite these challenges, Algoma Steel is progressing with its transition to Electric Arc Furnace (EAF) production, which is expected to enhance efficiency and reduce costs. The company is also focusing on expanding its market share in the Canadian steel plate market. In corporate governance news, Algoma Steel announced that its annual shareholder meeting is scheduled for May 2025, as indicated in a recent SEC filing. The company continues to navigate a challenging environment, with global steel market volatility and trade policy uncertainties posing risks.
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