TORONTO, ON and
TAMPA, FL, Dec. 11, 2019 /CNW/ - Cott Corporation
(NYSE:COT; TSX:BCB), a leading provider of home and office bottled
water delivery services in North
America and Europe and a
leader in custom coffee roasting for the U.S. food service
industry, announced today that the Company's Board of Directors has
approved a new 12-month share repurchase program of up to
$50 million.
Cott's board of directors has determined that the repurchase of
a portion of Cott's outstanding common shares is an appropriate use
of available cash and is in the best interests of Cott and its
shareowners. In order to facilitate repurchases, the Toronto Stock
Exchange (the "TSX") has approved Cott's notice of intention to
make a normal course issuer bid for a portion of its common shares
as appropriate opportunities arise from time to time. The total
size of the repurchase is capped at $50
million. Repurchases will be made through the facilities of
the TSX, the New York Stock Exchange ("NYSE") and other alternative
Canadian trading systems in accordance with applicable regulatory
requirements, including Rule 10b-18
of the Securities Exchange Act of 1934. Cott may begin to purchase
common shares on or about December 16,
2019.
As of December 3, 2019, Cott's
public float was 131,645,187 common shares, with 134,694,893 common
shares issued and outstanding. Pursuant to the notice, up to 10% of
the public float, or 13,164,518 common shares, may be repurchased
during the 12-month period commencing December 16, 2019 and ending on December 15, 2020, subject to the aggregate
$50 million cap. Of this amount, up
to 6,734,745 common shares may be repurchased through the
facilities of the NYSE. Common shares will be repurchased at
then-current market prices. Pursuant to the TSX rules, the maximum
number of common shares that may be repurchased during a single
trading day on the TSX is 32,839, representing 25% of the average
daily trading volume of 131,359 of Cott's common shares on the TSX
for the past six months, subject to certain exceptions for block
repurchases. Rule 10b-18 contains
similar volume-based restrictions on daily purchases on the NYSE,
subject to certain exceptions for block repurchases. Cott will fund
the purchases through cash on hand, and repurchased common shares
will be cancelled.
Common Shares will be repurchased in accordance with
management's discretion and in compliance with applicable law.
Pursuant to a previous notice of intention to conduct a normal
course issuer bid, under which Cott sought and received approval
from the TSX to purchase up to 10,564,732 Common Shares for the
period from December 14, 2018 to
December 13, 2019 (subject to a
maximum of US$50 million), Cott
purchased a total of 3,596,877 Common Shares through the facilities
of the TSX, the NYSE and/or alternative trading systems at a
weighted average purchase price of US$13.90 per Common Share.
"We are pleased to announce this share repurchase program which
underscores the Board's confidence in our current and long-term
prospects. Our share repurchase program continues to represent an
important part of our capital allocation strategy and an efficient
and flexible way of returning value to shareholders," said
Tom Harrington, Chief Executive
Officer. "Along with our quarterly cash dividend and tuck-in
program, the authorization of the new share repurchase program will
provide us with another tool for efficiently managing our capital
and maintaining our commitment to delivering a strong total return
for our shareholders."
ABOUT COTT CORPORATION
Cott is a water, coffee, tea, extracts and filtration service
company with a leading volume-based national presence in the North
American and European home and office delivery industry for bottled
water, and a leader in custom coffee roasting, iced tea blending,
and extract solutions for the U.S. foodservice industry. Our
platform reaches over 2.5 million customers or delivery points
across North America and
Europe and is supported by
strategically located sales and distribution facilities and fleets,
as well as wholesalers and distributors. This enables us to
efficiently service residences, businesses, restaurant chains,
hotels and motels, small and large retailers and healthcare
facilities.
Safe Harbor Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 conveying
management's expectations as to the future based on plans,
estimates and projections at the time Cott makes the statements.
Forward-looking statements involve inherent risks and uncertainties
and Cott cautions you that a number of important factors could
cause actual results to differ materially from those contained in
any such forward-looking statement. The forward-looking statements
contained in this press release include, but are not limited to,
statements related to the amount of shares that may be repurchased
under the share repurchase program. The forward-looking statements
are based on assumptions regarding management's current plans and
estimates. Management believes these assumptions to be reasonable
but there is no assurance that they will prove to be accurate.
Website: www.cott.com
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SOURCE Cott Corporation