TSX : MFI
www.mapleleaffoods.com
MISSISSAUGA, ON, May 22, 2019 /CNW/ - Maple Leaf Foods Inc.
(the "Company") today announced that the Toronto Stock Exchange
(the "TSX") has accepted the notice filed by the Company to
establish a normal course issuer bid ("NCIB") program.
The NCIB program commences on May 24,
2019 and will terminate on May 23,
2020, or on such earlier date as the Company may complete
its purchases pursuant to a Notice of Intention filed with the
TSX. Under the NCIB program, the Company is authorized to
purchase up to 7,507,000 of its common shares (out of the
124,374,726 common shares outstanding as at May 10, 2019) representing approximately 10% of
the public float as at May 10, 2019,
by way of normal course purchases effected through the facilities
of the TSX and/or alternative Canadian trading systems. The average
daily trading volume for the six months ended April 30, 2019 was 161,203 common shares. Common
shares purchased by the Company will be cancelled. Pursuant
to the terms of a previous normal course issuer bid approved by the
TSX on May 22, 2018, the Company was
authorized to repurchase 7,844,000 shares. The Company repurchased
an aggregate of 3,977,800 common shares on the TSX and on
alternative Canadian trading systems at a weighted average price of
$31.82 per share for cancellation
during the period commencing on May 24,
2018 and ending on May 23,
2019.
In deciding to establish the NCIB, the Company believes that the
market price of the common shares may not, from time to time, fully
reflect their value and accordingly the purchase of the common
shares would be in the best interest of the Company and an
attractive and appropriate use of available funds.
Purchases will be made by the Company in accordance with the
requirements of the TSX and the price which the Company will pay
for any such common shares will be the market price of any such
common shares at the time of acquisition, or such other price as
may be permitted by the TSX. In connection with the NCIB program,
the Company intends to enter into an automatic purchase plan with
its designated broker to allow for purchases of its common shares
during certain pre-determined black-out periods, subject to certain
parameters as to price and number of shares. Outside of these
pre-determined black-out periods, shares will be repurchased in
accordance with management's discretion, subject to applicable
law. For purposes of the TSX rules, a maximum of
40,300 common shares may be purchased by the Company on any
one day under the bid, except where purchases are made in
accordance with the "block purchase exception" of the TSX
rules.
About Maple Leaf Foods
Maple Leaf Foods Inc. is a
producer of food products under leading brands including Maple
Leaf®, Maple Leaf Prime®, Maple Leaf Natural Selections®,
Schneiders®, Schneiders® Country Naturals®, Mina®, Greenfield
Natural Meat Co.™, LightlifeTM, Field Roast Grain Meat
Co.™ and Swift®. Maple Leaf employs approximately 12,500 people and
does business in Canada, the U.S.
and Asia. The Company is
headquartered in Mississauga,
Ontario and its shares trade on the Toronto Stock Exchange
under the ticker symbol MFI.
Forward–Looking Statements
This document may contain
"forward-looking information" within the meaning of applicable
securities law including statements regarding future purchases of
common shares under the NCIB. These statements are not guarantees
of future events and involve assumptions and risks and
uncertainties that are difficult to predict. Some of these
assumptions and risks and uncertainties are described in more
detail in the Company's filings made with the securities regulatory
authorities in Canada which are
available on SEDAR at www.sedar.com. Actual results may
differ materially from those expressed, implied or forecasted in
such forward-looking information and there is no assurance that any
common shares will be purchased under the NCIB program. Maple Leaf
does not intend to, and Maple Leaf disclaims any obligation to,
update any forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
law.
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SOURCE Maple Leaf Foods Inc.