LUNENBURG, NS, Jan. 30, 2017 /CNW/ - High Liner Foods Incorporated (the "Company") (TSX: HLF) 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 150,000 of the 30,889,078 issued and outstanding Common Shares of the Company ("Common Shares") as of January 20, 2017, representing approximately 0.86% of the public float, being 17,445,265 shares, of the Common Shares as of January 20, 2017. The price the Company will pay for any Common Shares acquired will be the market price at the time of acquisition. Purchases under the normal course issuer bid ("NCIB") will be made by the Company and the shares so acquired shall be cancelled. Purchases may commence on February 2, 2017 and will terminate no later than February 1, 2018.
The average daily trading volume ("ADTV") of the Common Shares was 50,978 on the TSX over the six months ending December 31, 2016. Under 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 Common Shares on any trading day, or a larger amount of Common Shares per calendar week, subject to the maximum number that may be acquired under the NCIB, if the transaction meets the block purchase exception under TSX rules. Accordingly, unless a block purchase meeting the block purchase exception under TSX rules is made, the Company is entitled to purchase up to 12,744 Common Shares on any trading day.
In connection with the program, the Company has established an automatic securities purchase plan ("the Plan") for the Common Shares. The Plan was established to provide standard instructions regarding how the Common Shares are to be repurchased under the NCIB. Accordingly, the Company may repurchase its securities under the Plan on any trading day during the NCIB including during self-imposed trading blackout periods. The Plan will commence immediately and terminate when the NCIB terminates on February 1, 2018. The Company may otherwise vary, suspend or terminate the Plan only if it does not have material non-public information and the decision to vary, suspend or terminate the Plan is not taken during a self-imposed trading blackout period. The Plan constitutes an "automatic plan" for purposes of applicable Canadian securities legislation and has been reviewed by the TSX.
The Board of Directors and Senior Management of the Company are of the opinion that from time to time the purchase of its Common Shares at the prevailing market price is in the best interest of the Company and its shareholders. As of January 20, 2017, in the previous 12 months, the Company acquired 50,000 Common Shares at a weighted average price paid per security of $19.38 under the terms of an NCIB that expires on February 1, 2017.
About High Liner Foods Incorporated
High Liner Foods Incorporated is the leading North American processor and marketer of value-added frozen seafood. High Liner Foods' retail branded products are sold throughout the United States, Canada and Mexico under the High Liner, Fisher Boy, Mirabel, Sea Cuisine and C. Wirthy labels, and are available in most grocery and club stores. The Company also sells branded products to restaurants and institutions under the High Liner, Icelandic Seafood, and FPI labels and is a major supplier of private label value-added frozen seafood products to North American food retailers and foodservice distributors. High Liner Foods is a publicly traded Canadian company, trading under the symbol HLF 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 30, 2017. 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.
SOURCE High Liner Foods Incorporated
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For further information: Timothy Rorabeck, Executive Vice President, Consumer Affairs and General Counsel, High Liner Foods Incorporated, Tel: (902) 634-8811, [email protected]; INVESTOR RELATIONS CONTACT: Heather Keeler-Hurshman, High Liner Foods Incorporated, (902) 421-7100