VANCOUVER, Nov. 20, 2018 /CNW/ - Premium Brands Holdings Corporation (TSX:PBH) (the "Corporation") announced today that the Toronto Stock Exchange (the "TSX") has accepted its notice of intention to make a normal course issuer bid ("NCIB") to purchase for cancellation up to 1,688,266 common shares, representing 5% of the Corporation's issued and outstanding common shares.
As of November 19, 2018, the Corporation had 33,765,329 common shares issued and outstanding. In accordance with applicable TSX rules, daily purchases under the NCIB will not exceed 26,256 common shares, which represent 25% of the average daily trading volume of the common shares for the 6 month period ending October 31, 2018, being 105,027 common shares. In addition, the Corporation may, once per calendar week, make a block purchase of common shares not owned, directly or indirectly, by insiders of the Corporation.
The NCIB will begin on November 22, 2018 and will terminate on November 21, 2019, or on such earlier date as the Corporation completes the purchase of the maximum number of common shares permitted under the NCIB. All purchases will be made on the open market through the facilities of the TSX and/or alternative Canadian trading platforms, in accordance with their policies. The price to be paid by the Corporation for its common shares will be the market price at the time of purchase. Any common shares purchased by the Corporation under the NCIB will be cancelled.
From time to time, when the Corporation does not possess material non-public information about itself or its securities, it may enter into a pre-defined purchase plan with its broker to allow for the repurchase of common shares at times when the Corporation's internal trading blackout periods, insider trading or other rules prohibit such repurchases. Any such plan will be adopted in accordance with applicable Canadian securities laws and the rules of the TSX.
The Corporation is making the NCIB because it believes that, from time to time, the prevailing market price of the Corporation's common shares may not adequately reflect the underlying value of the Corporation, and that purchasing common shares for cancellation will increase the proportionate interest of, and be advantageous to, all remaining shareholders.
The Corporation has not made any NCIB purchases during the 12 month period preceding the date of the notice of intention filed with the TSX.
About Premium Brands
Premium Brands is a leading producer, marketer and distributor of branded speciality food products and owns a broad range of leading specialty food manufacturing and differentiated food distribution businesses with operations across Canada and the United States.
Forward Looking Statements
This press release contains forward looking statements with respect to the Corporation, including, without limitation, the anticipated benefits of the NCIB and the number of common shares that may be purchased under the NCIB. While management believes that the expectations reflected in such forward looking statements are reasonable and represent the Corporation's internal expectations and beliefs as of November 20, 2018, there can be no assurances that such expectations will prove to be correct as such forward looking statements involve unknown risks and uncertainties beyond the Corporation's control which may cause the actual results, performance and achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Such risks and uncertainties include, without limitation, market reaction to the NCIB and those factors referred to in the section entitled "Risks and Uncertainties" in the Management's Discussion and Analysis of the Corporation for the 13 and 52 weeks ended December 30, 2017 which is available on SEDAR at www.sedar.com.
Unless otherwise indicated, the forward looking information in this press release is made as of November 20, 2018 and, except as required by applicable law, will not be publicly updated or revised. This cautionary statement expressly qualifies the forward looking information in this press release.
SOURCE Premium Brands Holdings Corporation
For further information: please contact George Paleologou, President and CEO, or Will Kalutycz, CFO, at (604) 656-3100, www.premiumbrandsholdings.com