LUNENBURG, NS, June 3, 2022
/CNW/ - High Liner Foods Incorporated (the
"Company") (TSX: HLF) today announced that it has
terminated early the normal course issuer bid it commenced on
June 23, 2021 (the "Terminated
Program"). The Company's Terminated Program authorized the
repurchase for cancellation up to 150,000 outstanding common shares
("Shares"). During the period ending May 30, 2022, the Company purchased for
cancellation all of the 150,000 Shares it had sought and obtained
approval to purchase under the Terminated Program through the
facilities of the Toronto Stock Exchange ("TSX") and
alternative Canadian trading systems in Canada for an approximate total cost of CDN
$1,986,000 and at a weighted average
price paid per share of approximately CDN $13.24.
The Company also announced today that the TSX has approved the
commencement of a new normal course issuer bid (the "New
Program"). Under the New Program, the Company is authorized to
purchase up to 350,000 Shares including the 150,000 Shares
purchased under the Terminated Program, for net new purchases of up
to 200,000 Shares, together representing 1.05% of the issued and
outstanding Shares as of June 10,
2021. The purchases will be made through the facilities of
the TSX and/or any alternative trading system in Canada. As of May 30,
2022 the issued and outstanding Shares of the Company were
33,312,714. The price the Company will pay for any Shares acquired
will be the market price at the time of acquisition. Purchases
under the New Program will be made by the Company and the Shares so
acquired shall be cancelled, reducing any dilution resulting from
Shares issued pursuant to stock-based compensation plans. Purchases
may commence on June 7, 2022 and will
terminate no later than June 6, 2023.
The actual number of Shares purchased under the New Program, the
timing of purchases and the price at which the Shares are purchased
will depend on management discretion based on factors such as
market conditions.
The Company's Defined Benefit Pension Plan ("Pension
Plan") may, from time to time, acquire Shares of the Company.
Shares purchased by the Pension Plan count towards the maximum
number of shares the Company can acquire under the New Program. If
Shares are acquired by the Pension Plan, those Shares will remain
outstanding and held by the Pension Plan.
The average daily trading volume ("ADTV") of the
Company's Shares on the TSX over the six months ending April 30, 2022 was 33,178 Shares. Under TSX
rules, the Company is entitled to purchase up to the greater of:
25% of the ADTV of the respective class of shares; or 1,000 shares
on any trading day; or a larger amount of shares per calendar week,
subject to the maximum number that may be acquired under the New
Program if the transaction meets the block purchase exception under
TSX rules. Accordingly, unless a block purchase meeting the block
purchase exception under TSX rules is made, the Company is entitled
to purchase up to 6,998 Shares, that is the daily limit under the
Terminated Program, until the end of day on June 22, 2022. From June
23, 2022 until the expiry of the New Program, the Company is
entitled to purchase up to 8,294 Shares on any trading day.
In connection with the New Program, the Company has established
an automatic securities purchase plan ("the Plan") for the
Shares. The Plan was established to provide standard instructions
regarding how the Shares are to be repurchased under the New
Program. Accordingly, the Company may repurchase its securities
under the Plan on any trading day during the New Program including
during regulatory restrictions or self-imposed trading blackout
periods. The Plan will commence immediately and terminate when the
New Program terminates on June 6,
2023. The Company may otherwise vary, suspend or terminate
the Plan only if it does not have material non-public information
and the decision to vary, suspend or terminate the Plan is not
taken during a self-imposed trading blackout period. The Plan
constitutes an "automatic plan" for purposes of applicable Canadian
securities legislation and has been reviewed by the TSX.
The Board of Directors and Senior Management of the Company are
of the opinion that from time to time the purchase of its Shares at
the prevailing market price is in the best interest of the Company
and its shareholders. By making such repurchases, the number of
Shares in circulation will be reduced and the proportionate
interest of remaining shareholders of the Company in the share
capital of the Company will be increased on pro rata basis.
About High Liner Foods
Incorporated
High Liner Foods Incorporated is a leading North American
processor and marketer of value-added frozen seafood. High Liner
Foods' retail branded products are sold throughout the United States and Canada under the High Liner,
Fisher Boy, Mirabel, and Sea Cuisine
labels, and are available in most grocery and club stores. The
Company also sells branded products to restaurants and institutions
under the High Liner, Mirabel, Icelandic Seafood, and
FPI labels and is a major supplier of private label
value-added seafood products to North American food retailers and
foodservice distributors. High Liner Foods is a publicly traded
Canadian company, trading under the symbol HLF on the Toronto Stock
Exchange.
This news release contains forward-looking statements which
reflect management's expectations regarding the Company's plans to
purchase for cancellation shares under the normal course issuer
bid. These statements are based on management's reasonable
assumptions and beliefs in light of the information currently
available to them and reflect expectations as of June 3, 2022. These forward-looking statements
are subject to uncertainties and other factors that could cause
actual results to differ materially from such statements, including
without limitation, regulatory approval, market and economic
conditions, availability of sellers, changes in laws and
regulations, operating efficiencies and cost saving initiatives.
Readers are urged to consider the risks, uncertainties and
assumptions carefully in evaluating the forward-looking information
and are cautioned not to place undue reliance on such
forward-looking information. The Company does not undertake to
update these forward-looking statements other than as required by
applicable securities laws.
For further information about the Company, please visit our
Internet site at www.highlinerfoods.com or send an e-mail to
investor@highlinerfoods.com.
SOURCE High Liner Foods Incorporated
