MISSISSAUGA, ON, May 22, 2018 /PRNewswire/ - Maple Leaf Foods Inc.
(MFI: TSX) (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,
2018 and will terminate on May 23,
2019, 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 7,844,000 of its common shares (out of the
126,536,589 common shares outstanding as at May 11, 2018) representing approximately 10% of
the public float as at May 11, 2018,
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, 2018 was 162,404 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 17, 2017, the Company was
authorized to repurchase 8,200,000 shares. The Company repurchased
an aggregate of 3,312,600 common shares on the TSX and on
alternative Canadian trading systems at a weighted average price of
$32.80 per share for cancellation
during the period commencing on May 23,
2017 and ending on May 11,
2018.
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
40,600 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.
Maple Leaf Foods Inc. is a leading consumer protein company,
making high quality, innovative products under national brands
including Maple Leaf®, Maple Leaf Prime®,
Maple Leaf Natural Selections®, Schneiders®,
Schneiders® Country Naturals®,
Mina®, LightlifeTM and Field Roast Grain
Meat Co. TM. The Company employs approximately
11,500 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 (MFI).
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.