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.
Cott is a water 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. Our platform reaches over 2.5 million customers or delivery points across North America and...