LUNENBURG, NS, June 5, 2023
/CNW/ - High Liner Foods Incorporated (the
"Company") (TSX: HLF) today announced that it has
filed a notice with the Toronto Stock Exchange ("TSX") and
received approval to purchase through the facilities of the TSX
and/or any alternative trading system in Canada, up to 200,000, or approximately 0.60%,
of the 33,360,699 issued and outstanding Common Shares of the
Company ("Common Shares") as of May
25, 2023. The price the Company will pay for any Common
Shares acquired will be the market price at the time of
acquisition. Purchases under the normal course issuer bid ("NCIB")
will be made by the Company and the Common Shares acquired shall be
cancelled, reducing any dilution resulting from Common Shares
issued pursuant to stock-based compensation plans. Purchases may
commence on June 7, 2023, and will
terminate no later than June 6, 2024.
The actual number of Common Shares purchased under the NCIB, the
timing of purchases and the price at which the Common 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 Common Shares of the
Company. Common Shares purchased by the Pension Plan count towards
the maximum number of Common Shares the Company can acquire under
the NCIB. If Common Shares are acquired by the Pension Plan, those
Common 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, 2023, was 15,001 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 NCIB,
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 3,750 Common Shares on any trading day.
In connection with the NCIB, the Company has established an
automatic securities purchase plan ("the Plan") for the
Common Shares. The Plan was established to provide standard
instructions regarding how the Common Shares are to be repurchased
under the NCIB. Accordingly, the Company may repurchase its
securities under the Plan on any trading day during the NCIB
including during regulatory restrictions or self-imposed trading
blackout periods. The Plan will commence on June 7, 2023 and terminate on June 6, 2024. 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 Common
Shares at the prevailing market price is in the best interest of
the Company and its shareholders. By making such repurchases,
the number of Common 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. As of May 25, 2023, in the
previous 12 months, the Company acquired 135,568 Common Shares of
the authorized 200,000 Common Shares, through the facilities of the
TSX and alternative Canadian trading systems in Canada, for an approximate total cost of CDN
$1,666,131 at a weighted average
price paid per security of $12.29
under the terms of an NCIB that expires on June 6, 2023.
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 5, 2023. 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
