MONTREAL, July 29, 2016 /CNW Telbec/ - Supremex Inc., Canada's largest manufacturer and marketer of a broad range of stock and custom envelopes and growing provider of packaging and specialty products, is pleased to announce that it has received approval from the Toronto Stock Exchange ("TSX") to purchase its own shares by way of a normal course issuer bid (the "NCIB"), for cancellation.
Normal Course Issuer Bid
Supremex has received approval from the TSX to purchase by way of a NCIB, for cancellation, up to 500,000 of its common shares, representing approximately 1.75% of its 28,644,771 issued and outstanding common shares as of July 20, 2016.
From July 2, 2015 until July 1, 2016, Supremex has purchased by way of a NCIB, for cancellation, 106,196 of its common shares at a weighted average price of $4.71 per share for a total consideration of $499,702.
Purchases under the NCIB will be made through the facilities of the TSX or alternative trading facilities in Canada, if eligible, in accordance with applicable securities laws and regulations, over a maximum period of 12 months beginning on August 3, 2016 and ending on August 2, 2017.
The average daily trading volume of Supremex' common shares over the six (6) calendar months prior to the date hereof was 36,242. Accordingly, Supremex is entitled to purchase, on any trading day, up to 9,051 common shares representing 25% of such average daily trading volume. In addition, Supremex may make, once per week, a block purchase (as such term is defined in the TSX Company Manual) of common shares not directly or indirectly owned by insiders of Supremex, in accordance with TSX rules.
Purchases under the NCIB will be made by means of open market transactions or such other means as the TSX or a securities regulatory authority may permit, including pre-arranged crosses, exempt offers and private agreements under an issuer bid exemption order issued by a securities regulatory authority.
The price to be paid by Supremex for any common share will be the market price at the time of acquisition, plus brokerage fees or such other price as the TSX may permit. In the event that Supremex purchases common shares by private agreements, the purchase price of the common shares will be at a discount to the market price of the common shares at the time of the acquisition.
Supremex also announced that it has entered into an automatic purchase plan ("APP") agreement with a broker to allow for the purchase of its common shares under the NCIB at times when Supremex ordinarily would not be active in the market due to self-imposed trading blackout periods. Before entering into a blackout period, Supremex may, but is not required to, instruct the designated broker to make purchases under the NCIB in accordance with the terms of the APP. Such purchases will be determined by the broker in its sole discretion based on parameters established by Supremex prior to the blackout period in accordance with TSX rules, applicable securities laws and the terms of the APP. The terms of the APP have been pre cleared by the TSX. Outside of these pre-determined blackout periods, common shares will be purchased in accordance with management's discretion.
Supremex believes that the purchase by it of its own common shares may represent a responsible and advisable use of its funds on hand to increase shareholder value.
Supremex Inc. is a leading North American manufacturer and marketer of a broad range of stock and custom envelopes and growing provider of packaging and specialty products. Supremex is the only national envelope manufacturer in Canada, with facilities across seven (7) provinces and two (2) facilities in the United States and employs approximately 650 people. Supremex' growing footprint allows it to efficiently manufacture and distribute products tailored to the specifications of major corporations, national resellers, government entities, as well as paper merchants, statement processors and solutions providers. For more information, please visit www.supremex.com.
SOURCE Supremex Inc.
For further information: Benoît Crowe, CPA, CA, Vice-President, Finance, (514) 595-0555