KELOWNA, BC, March 4 /CNW/ - Sun-Rype Products Ltd. (TSX:SRF) announces that it intends to acquire for cancellation a certain number of Common Shares ("Shares") in its share capital through the facilities of The Toronto Stock Exchange, in accordance with the requirements on normal course issuer bids of The Toronto Stock Exchange. This notice has been accepted by The Toronto Stock Exchange.
Sun-Rype intends to acquire up to 529,018 Shares (representing 10% of the public float, being 5,290,188 Shares as at March 1, 2010) during the period beginning on March 10, 2010, and ending on or before March 9, 2011. As at March 1, 2010, there were 10,827,600 issued and outstanding Shares.
The average daily trading volume of Sun-Rype's Shares over the last six completed calendar months was 2,080 Shares (the "ADTV"). Accordingly, under The Toronto Stock Exchange's rules and policies, Sun-Rype is entitled on any trading day to purchase up to 1,000 Shares. Once a week, in excess of the daily 1,000 share repurchase limit, Sun-Rype may also purchase a block of Shares not owned by an insider (i) having a purchase price of $200,000 or more, (ii) of at least 5,000 Shares having a purchase price of at least $50,000, or (iii) of at least 20 board lots of Shares which total 150% or more of the ADTV, the whole in accordance with The Toronto Stock Exchange's rules.
No shares have been purchased by Sun-Rype in the last 12 months.
Sun-Rype is making the normal course issuer bid because it is of the view that it may be advantageous to engage in purchases of its Shares, from time to time, when, in the opinion of management, they are trading at prices which reflect a discount from what management constitutes to be the appropriate value of the Shares. In addition, management is of the opinion that its shareholders will benefit from the reduction of the number of Shares issued and outstanding as a result of purchases under the normal course issuer bid.
No directors, officers or insiders of Sun-Rype intend to sell any Shares under the proposed purchase.
Sun-Rype reserves the right to discontinue purchases at any time prior to March 9, 2011.
Sun-Rype Products Ltd., based in Kelowna, BC, is a manufacturer and marketer of 100% juices and 100% fruit snacks under the Sun-Rype brand. Sun-Rype is a publicly traded Canadian company with its common shares listed on the Toronto Stock Exchange under the symbol SRF.
Forward Looking Statements
Statements contained in this press release, which are not based on historical fact, including without limitation, statements containing the words "may", "will", "plans", "intends", "expects", "anticipates", "believes", "estimate", "continue" and similar expressions, constitute "forward looking information" within the meaning of applicable Canadian securities laws. Forward looking statements contained in this document may involve, but are not limited to, statements relating to the Company's objectives, priorities, strategies, actions, targets, expectations and outlook. Forward looking statements are necessarily based upon assumptions and predictions with respect to the future, including but not limited to the factors referred to below. As a result, forward looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied thereby. These risks, uncertainties and other factors include, but are not limited to, changes in the consumer packaged goods industry and external market factors, as well as the factors referred to in the Company's Annual Information Form dated March 4, 2010, and its other filings with the applicable Canadian securities regulatory authorities. In light of these uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward looking statements. Except as required by law, the Company assumes no obligation to update or revise such information to reflect later events or developments.
SOURCE Sun-Rype Products Ltd.
For further information: For further information: Don VanderZwaag, Director, Finance & Accounting, Sun-Rype Products Ltd., 1165 Ethel Street, Kelowna, BC, V1Y 2W4, Tel: (250) 860-7973, Fax: (250) 762-3611, firstname.lastname@example.org; or Dave McAnerney, Chief Executive Officer, Sun-Rype Products Ltd., 1165 Ethel Street, Kelowna, BC, V1Y 2W4, Tel: (250) 860-7973, Fax: (250) 762-3611, email@example.com; www.sunrype.com