ROUGEMONT, QC, Sept. 28, 2018 /CNW Telbec/ - Lassonde Industries Inc. (TSX: LAS.A) announces that it intends to acquire for cancellation, if considered advisable, a certain number of Class "A" subordinate voting shares of its share capital by means of open market transactions through the facilities of the Toronto Stock Exchange (TSX) or alternative trading systems, in accordance with the requirements on normal course issuer bids of the TSX (Bid).
Under the Bid, Lassonde may repurchase for cancellation up to 80,000 Class "A" subordinate voting shares of its share capital (representing 2.47% of the 3,235,300 issued and outstanding Class "A" subordinate voting shares as at September 19, 2018) during the period beginning on October 3rd, 2018 and ending on or before October 2nd, 2019. In connection with the Bid, Lassonde has established an automatic purchase plan (Plan). The Plan enables the Company to provide predefined instructions regarding how the Class "A" subordinate voting shares are to be repurchased on the open market during self-imposed blackout periods. The Plan should terminate together with the Bid. It constitutes an automatic plan for purposes of applicable Canadian securities legislation, and has been reviewed by the TSX.
The average daily trading volume of Lassonde's Class "A" subordinate voting shares over the last six completed calendar months was 2,509 (ADTV). Accordingly, according to the TSX Rules and policies, Lassonde is entitled on any trading day to purchase up to 1,000 Class "A" subordinate voting shares. Once a week, in excess of the daily 1,000 repurchase limit, Lassonde may also purchase a block of shares not owned by an insider (i) having a purchase price of $200,000 or more, or (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 TSX rules. During the period from January 13, 2016 to September 28, 2018 Lassonde has not acquired any Class "A" subordinate voting shares.
Lassonde is making the normal course issuer bid because it is of the view that it may be advantageous to engage in purchases of the Class "A" subordinate voting shares, from time to time, when, in the opinion of management, they are trading at prices which reflect a discount from what management considers to be the appropriate value of the Class "A" subordinate voting shares. In addition, Lassonde is of the opinion that its shareholders will benefit from the reduction of the number of Class "A" subordinate voting shares issued and outstanding as a result of purchases under the normal course issuer bid.
To the Company's knowledge, no director, senior officer or associate of a director or senior officer of the Company, person acting jointly or in concert with the Company, or person holding 10% or more of any class of equity securities of the Company currently intends to sell any Class "A" subordinate voting shares of the Company under the proposed Bid. However, sales by such persons through the facilities of TSX may occur if the personal circumstances of any such person change or if any such person makes a decision unrelated to the Bid. The benefits to any such person whose Class "A" subordinate voting shares are purchased under the Bid would be the same as the benefits available to all other holders whose Class "A" subordinate voting shares are likewise purchased.
Lassonde reserves the right to discontinue purchases at any time prior to October 2nd, 2019.
Lassonde Industries Inc. is a North American leader in the development, manufacture and sale of a wide range of ready-to-drink fruit and vegetable juices and drinks marketed under brands such as Apple & Eve, Everfresh, Fairlee, Fruité, Graves, Oasis and Rougemont.
Lassonde is also one of the two largest producers of store brand shelf-stable fruit juices and drinks in the United States and a major producer of cranberry sauces.
Lassonde recently acquired Old Orchard Brands, LLC, a fruit juice and beverage manufacturing company based in Sparta, Michigan. OOB's product portfolio consists of nearly 100 different varieties, including 100% juice, 100% juice blends, reduced-sugar juice cocktails, seasonal lemonades and flavoured teas. Moreover, OOB is a leader in ready-to-drink fruit juices and drinks in the Central United States. Old Orchard is also the second largest frozen juice concentrates brand in the United States.
Lassonde also develops, manufactures and markets specialty food products under brands such as Antico and Canton. The Company imports and markets selected wines from various countries and manufactures apple ciders and cider-based beverages.
The Company produces superior quality products through the expertise of approximately 2,200 people working in 15 plants across Canada and the United States. To learn more, visit www.lassonde.com.
SOURCE Lassonde Industries Inc.
For further information: Investor contact: Guy Blanchette, FCPA, CA, Executive Vice-President and Chief Financial Officer, Lassonde Industries Inc., 450-469-4926, extension 10782; Media contact: Stefano Bertolli, Vice-President Communications, Lassonde Industries Inc., 450-469-4926, extension 10265