OAKVILLE, ON, Nov. 6, 2013 /CNW/ - Vicwest Inc. (the "Company" or "Vicwest") (TSX: VIC, VIC.DB) today announced the introduction of a Dividend Reinvestment Plan ("DRIP") that will enable eligible shareholders to automatically reinvest their cash dividends in additional common shares of the Company without any brokerage fees.
Eligible shareholders who reinvest dividends under the DRIP will receive additional common shares of Vicwest, which will either be purchased in the market or issued from treasury at a discount to the market price (calculated based on the volume-weighted average trading price of the common shares on the Toronto Stock Exchange for the five trading days preceding the applicable dividend payment date), as announced by Vicwest from time to time. Initially, until further notice, additional common shares issued under the DRIP will be issued from treasury at a 4% discount to the market price.
Colin Osborne, Vicwest's President and CEO, said: "This reinvestment program will permit participating shareholders to increase their ownership stake in an efficient and very cost-effective fashion, and will see their funds put back to work to continue to build the Company and to capitalize on the growth opportunities available in our markets."
Vicwest has a well-established track record of creating value. Five-year total shareholder return between 2007 and 2012 was 145.9% and, over the same period, Vicwest paid an aggregate of $146 million in dividends to shareholders. Today it declared its most recent dividend, in the amount of $0.15 per share for the fourth quarter of 2013, payable on January 15, 2014 to shareholders of record at the close of business on December 31, 2013.
The full plan text of the DRIP, and an informative Q&A, including specific details on how to enroll in the DRIP, are available at www.vicwestinc.com. Shareholders are encouraged to consult their advisors concerning the tax implications of participating and to understand eligibility requirements. The DRIP does not relieve shareholders of taxes that may be payable in connection with dividends that are reinvested under the DRIP. Participation is limited to shareholders resident in Canada.
ABOUT VICWEST INC.
Vicwest Inc. is a leading manufacturer and distributor of engineered storage and handling systems for grain, fertilizer and liquid storage as well as building construction products for agriculture, commercial, industrial and residential markets. We operate through two strategically aligned divisions: Vicwest Building Products and Westeel. With approximately 7,000 customers, 1,200 dedicated employees and 34 business partners, we are positioned for growth in domestic and international markets. Vicwest Inc. is a member of the S&P/TSX SmallCap Index. For more information, visit www.vicwestinc.com.
Certain statements in this news release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements include, but are not limited to, management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or "continue", or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by such statements. Readers are encouraged to review the most recently filed Management's Discussion and Analysis and other disclosure documents filed by the Company with Canadian securities regulatory agencies and commissions. Readers are cautioned not to place undue reliance on the Company's forward-looking statements. The forward-looking statements contained herein are made as of the date of this press release and except as required by applicable law, the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE: Vicwest Inc.
For further information:
President & Chief Executive Officer
Tel: (905) 469-5700