MISSISSAUGA, ON, March 23, 2015 /CNW/ - 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.
For further information: Investor Contact: Nick Boland, VP Investor Relations, 905-285-5898; Media Contact: David Bauer, Director, Public Affairs, 905-285-1510