EcoSynthetix Announces Normal Course Issuer Bid

• EcoSynthetix has announced a Normal Course Issuer Bid (NCIB) to repurchase up to 4,285,659 common shares.
• The program runs from May 15, 2026, through May 14, 2027, representing approximately 10% of the public float.
• An automatic securities purchase plan is in place with a designated broker to facilitate purchases during regulatory blackout periods.
• Daily trading limit capped at 25% of average daily trading volume (ADTV), roughly 6,180 shares per day.
• Previous NCIB (May 2025–May 2026) saw 542,963 shares purchased at a VWAP of $3.76.
• Q1 2026 results released May 5 showed net sales of $3.8 million (-7% YoY) but improved Adjusted EBITDA loss to $0.3 million from $0.5 million prior year.
• Liquidity remains strong with cash and term deposits totaling $29.8 million as of March 31, 2026.

• The NCIB is a standard capital allocation tool rather than a fundamental business breakthrough; it signals management confidence in the current valuation but does not alter revenue growth trajectories.
• Given the stock price has declined from $4.88 (Nov 2025) to $3.14 (May 2026), buying back shares at ~$3.14 is significantly cheaper than the previous NCIB VWAP of $3.76, suggesting management views the stock as undervalued relative to cash reserves.
• However, Q1 sales declined 7% due to customer de-stocking and macro conditions; the buyback does not address this top-line weakness immediately.
• The program consumes approximately $13.5 million of available cash (4.28M shares * ~$3.14), reducing liquidity from $29.8 million to roughly $16.3 million if fully utilized, which increases capital risk if sales do not recover in H2 2026.
• The news is categorized as Routine - Positive because NCIBs are expected annual filings for cash-rich companies and the market has likely priced in this support mechanism given the recent price decline.

• Company: EcoSynthetix Inc., focused on bio-based polymers and sustainable chemistry solutions.
• Flagship Product: SurfLock™ strength aids for pulp, tissue, and packaging applications; MaizeCare™ brand polymers.
• Development Status: Industrial-scale trials completed at second larger facility for global pulp producer; continued trial activity across top-tier producers.
• Commercial Footprint: Expanded into European tissue market via distributor RNM Group; international retailer committed to bio-based glues by 2030.
• Operational Efficiency: Achieved "climate-positive" operations, avoiding >125% of associated carbon emissions.