KELOWNA, BC, Dec. 6, 2012 /CNW/ - Sun-Rype Products Ltd. (TSX: SRF) announces that it intends to acquire for cancellation a certain number of Common Shares ("Shares") in its share capital through the facilities of The Toronto Stock Exchange and other Canadian marketplaces, in accordance with the requirements on normal course issuer bids of The Toronto Stock Exchange. This notice has been accepted by The Toronto Stock Exchange.
Sun-Rype intends to acquire up to 270,000 Shares (representing approximately 2.5% of the issued and outstanding, being 10,791,100 Shares as at December 6, 2012) during the period beginning on December 10, 2012, and ending on or before December 9, 2013.
The average daily trading volume of Sun-Rype's Shares over the last six completed calendar months was 3,960 Shares (the "ADTV"). Accordingly, under The Toronto Stock Exchange's rules and policies, Sun-Rype is entitled on any trading day to purchase up to 1,000 Shares. Once a week, in excess of the daily 1,000 share repurchase limit, Sun-Rype may also purchase a block of Shares not owned by an insider (i) having a purchase price of $200,000 or more, (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 Toronto Stock Exchange's rules.
Sun-Rype has purchased 16,800 shares at an average of $5.76 per share through a normal course issuer bid in the last 12 months.
Sun-Rype is making the normal course issuer bid because it is of the view that it may be advantageous to engage in purchases of its Shares, from time to time, when, in the opinion of management, they are trading at prices which reflect a discount from what management constitutes to be the appropriate value of the Shares. In addition, management is of the opinion that its shareholders will benefit from the reduction of the number of Shares issued and outstanding as a result of purchases under the normal course issuer bid.
No directors, officers or insiders of Sun-Rype intend to sell any Shares under the proposed purchase.
Sun-Rype reserves the right to discontinue purchases at any time prior to December 9, 2013.
Sun-Rype Products Ltd., based in Kelowna, BC, is a manufacturer and marketer of 100% juices and 100% fruit snacks under the Sun-Rype brand. Sun-Rype is a publicly traded Canadian company with its common shares listed on the Toronto Stock Exchange under the symbol SRF.
Forward Looking Statements
Statements contained in this press release, which are not based on historical fact, including without limitation, statements containing the words "may", "will", "plans", "intends", "expects", "anticipates", "believes", "estimate", "continue" and similar expressions, constitute "forward looking information" within the meaning of applicable Canadian securities laws. Forward looking statements contained in this document may involve, but are not limited to, statements relating to the Company's objectives, priorities, strategies, actions, targets, expectations and outlook. Forward looking statements are necessarily based upon assumptions and predictions with respect to the future, including but not limited to the factors referred to below. As a result, forward looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied thereby. These risks, uncertainties and other factors include, but are not limited to, changes in the consumer packaged goods industry and external market factors, as well as the factors referred to in the Company's Annual Information Form dated March 7, 2012, and its other filings with the applicable Canadian securities regulatory authorities. In light of these uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward looking statements. Except as required by law, the Company assumes no obligation to update or revise such information to reflect later events or developments.
SOURCE: Sun-Rype Products Ltd.
For further information:
President & Chief Executive Officer
Sun-Rype Products Ltd.
1165 Ethel Street
Kelowna, BC V1Y 2W4
Tel: (250) 860-7973
Fax: (250) 762-3611