MISSISSAUGA, ON, March 23, 2015 /PRNewswire/ - Maple Leaf Foods
Inc. (MFI: TSX) 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 March 25,
2015 and will terminate on March 24,
2016, 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 8,650,000 of its common shares (out of the
142,990,989 common shares outstanding as at March 11, 2015) representing approximately 9.08%
of the public float as at March 11,
2015, by way of normal course purchases effected through the
facilities of the TSX and/or alternative Canadian trading
platforms. The average daily trading volume for the six months
ended February 28, 2015 was 333,123
common shares. Common shares purchased by the Company will be
cancelled.
Maple Leaf is proceeding with the purchase of common shares for
cancellation through a NCIB in order to offset dilution from equity
compensation plans. The number of shares authorized to be
repurchased is equivalent to the number of shares previously issued
under active equity compensation plans and reserved for grants
currently outstanding and future grants under those plans. As the
Company completes its supply chain transition, the Board will be
developing a broader capital allocation strategy.
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 83,281 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 Canadian 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® and Mina™.
The Company employs approximately 12,000 people across Canada and exports to global markets,
including 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. These statements are not
guarantees of future events and involve assumptions and risks and
uncertainties that are difficult to predict. 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.
SOURCE Maple Leaf Foods Inc.