LUNENBURG, NS, Jan. 27, 2012 /CNW/ - High Liner Foods Incorporated (TSX: HLF; HLF.A) today announced that it has filed a notice with the Toronto Stock Exchange and received approval to purchase through the facilities of the Toronto Stock Exchange up to 100,000 of the 13,306,284 issued and outstanding Common Shares, representing approximately 1.4% of the public float, being 7,038,628 shares, of the Common Shares as of January 26, 2012, and up to 100,000 of the 1,788,062 issued and outstanding Non-Voting Equity Shares, representing approximately 7.1% of the public float, being 1,404,242 shares, of the Non-Voting Equity Shares as of January 26, 2012. The price the Company will pay for any Common Shares or Non-Voting Equity Shares acquired will be the market price at the time of acquisition. Purchases under the normal course issuer bid will be made by the Company and the shares so acquired shall be cancelled. Purchases may commence on January 31, 2012 and will terminate no later than January 30, 2013.
The average daily trading volume (ADTV) of the Common Shares was 11,609 and the ADTV of the Non-Voting Equity Shares was 61 on the TSX over the six months ending December 31, 2011. Under the TSX rules, the Company is entitled to purchase up to the greater of 25% of the ADTV of the respective class of shares or 1,000 shares on any trading day, or a larger amount of Common Shares and Non-Voting Equity Shares per calendar week, subject to the maximum number that may be acquired under the normal course issuer bid, if the transaction meets the block purchase exception under the TSX rules. Accordingly, unless a block purchase meeting the block purchase exception under the TSX rules is made, the Company is entitled to purchase up to 2,902 Common Shares and 1,000 Non-Voting Equity Shares on any trading day.
The Board of Directors and Senior Management of High Liner are of the opinion that from time to time the purchase of its shares at the prevailing market price is in the best interest of High Liner and its shareholders. In the last 12 months, High Liner has acquired 88,758 Non-Voting Equity Shares at a weighted average rate of $13.70 per share and no Common Shares under the terms of a Normal Course Issuer Bid that expired on December 16, 2011. The High Liner pension plan also purchased 25,000 Non-Voting Equity Shares over the last 12 months at a weighted average rate of $13.75 per share.
About High Liner Foods Incorporated
High Liner Foods Incorporated is a leading North American processor and marketer of prepared, value-added frozen seafood. High Liner's branded products are sold throughout the United States, Canada and Mexico under the High Liner®, Fisher Boy®, Mirabel®, Sea Cuisine® and Royal Sea® labels, and are available in most grocery and club stores. The Company also sells its High Liner®, FPI®, Mirabel®, Viking™, Icelandic® Seafood, Samband of Iceland®, Seastar®, and Seaside® food service products to restaurants and institutions, and is a major supplier of private label seafood products to North American food retailers and food service distributors. High Liner Foods is a publicly traded Canadian company, trading under the symbols HLF and HLF.A on the Toronto Stock Exchange.
This news release contains forward-looking statements which reflect management's expectations regarding the Company's plans to purchase for cancellation shares under the normal course issuer bid. These statements are based on management's reasonable assumptions and beliefs in light of the information currently available to them, and reflect expectations as of January 26, 2012. These forward-looking statements are subject to uncertainties and other factors that could cause actual results to differ materially from such statements, including without limitation, regulatory approval, market and economic conditions, availability of sellers, changes in laws and regulations, operating efficiencies and cost saving initiatives. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such forward-looking information. The Company does not undertake to update these forward-looking statements other than as required by applicable securities laws.
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