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TORONTO, Dec. 14, 2021 /CNW/ - Roots
Corporation ("Roots," "Roots Canada" or the "Company") (TSX:
ROOT) today announced that the Toronto Stock Exchange (the "TSX")
accepted a notice filed by Roots of its intention to commence a
Normal Course Issuer Bid for its Common Shares through the
facilities of the TSX (or other alternative Canadian trading
systems). Purchases will be made in accordance with the rules and
policies of the TSX and Common Shares purchased will be
cancelled.
The notice provides that the Roots board of directors has
approved the purchase on the TSX, during the period commencing
December 16, 2021 and ending
December 15, 2022, of up to 2,172,928
Common Shares representing approximately 10% of Roots public float
of 21,729,287 Common Shares as at December
3, 2021. As at December 3,
2021, Roots had outstanding 42,258,636 Common Shares. Under
the bid, Roots may purchase up to 10,347 Common Shares on the TSX
(or other alternative Canadian trading systems) during any trading
day, which represents 25% of the average daily trading volume on
the TSX for the prior six months (being 41,391 Common Shares), all
as calculated in accordance with the rules of the TSX. This
limitation does not apply to purchases made pursuant to block
purchase exemptions.
Roots is making this Normal Course Issuer Bid because it
believes that in appropriate circumstances its Common Shares
represent an attractive investment opportunity and that purchases
under the bid will enhance the value of the Common Shares held by
the remaining shareholders.
Roots also announced that it has entered into an automatic share
purchase plan (the "ASPP") with a designated broker to allow for
the purchase of its Common Shares under the NCIB at times when
Roots normally would not be active in the market due to applicable
regulatory restrictions or internal trading black-out periods.
Before the commencement of any particular internal trading
black-out period, Roots may, but is not required to instruct its
designated broker to make purchases of Common Shares under the NCIB
during the ensuing black-out period in accordance with the terms of
the ASPP. Such purchases will be determined by the broker in its
sole discretion based on parameters established by Roots prior to
commencement of the applicable black-out period in accordance with
the terms of the ASPP and applicable TSX rules. Outside of these
black-out periods, Common Shares will be purchasable by Roots at
its discretion under its NCIB.
The ASPP is dated December 14,
2021 and will terminate on the earliest of the date on
which: (a) the maximum annual purchase limit in respect of the
Common Shares under the NCIB has been reached; (b) the NCIB
expires; or (c) Roots terminates the ASPP in accordance with its
terms. The ASPP constitutes an "automatic securities purchase plan"
under applicable Canadian securities laws.
About Roots
Established in 1973, Roots is a premium outdoor-lifestyle brand.
We unite the best of cabin and city through unmistakable style
built with uncompromising comfort and quality. We offer a broad
range of products designed for life's everyday adventures,
including women's and men's apparel, leather goods, footwear,
accessories, and kids, toddler and baby apparel. Starting from a
little cabin in Algonquin Park,
Canada, Roots has grown to become a global brand. We operate
more than 100 retail stores across Canada, two in the
United States, and ship to more than 60 countries worldwide
via roots.com, our eCommerce platform. We also have more than 100
partner-operated stores and sell our products through leading
third-party retail sites in Asia.
Roots Corporation is a Canadian corporation doing business as
"Roots" and "Roots Canada".
Forward-Looking Information
Certain information in this press release contains
forward-looking information. This information is based on
management's reasonable assumptions and beliefs in light of the
information currently available to us and is made as of the date of
this press release. Actual results and the timing of events may
differ materially from those anticipated in the forward-looking
information as a result of various factors. Information regarding
our expectations of future results, performance, achievements,
prospects or opportunities or the markets in which we operate is
forward-looking information. Statements containing forward-looking
information are not facts but instead represent management's
expectations, estimates and projections regarding future events or
circumstances. Many factors could cause our actual results, level
of activity, performance or achievements or future events or
developments to differ materially from those expressed or implied
by the forward-looking statements.
See "Forward-Looking Information" and "Risk Factors" in the
Company's current Annual Information Form for a discussion of the
uncertainties, risks and assumptions associated with these
statements. Readers are urged to consider the uncertainties, risks
and assumptions carefully in evaluating the forward-looking
information and are cautioned not to place undue reliance on such
information. We have no intention and undertake no obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by applicable securities law.
SOURCE Roots Corporation