(TSX: KBL)
EDMONTON, AB, May 16, 2024
/CNW/ - K-Bro Linen Inc. ("K-Bro" or the
"Corporation") today announces that the TSX has accepted its
notice of intention to proceed with a normal course issuer bid.
K-Bro's Board of Directors believes that a normal course issuer
bid represents an appropriate and desirable use of its available
liquidity to increase shareholder value and is in the best
interests of K-Bro and its shareholders.
Pursuant to the notice, K-Bro may purchase up to 754,247 of its
common shares ("Shares") through the TSX and/or alternative
Canadian trading systems, representing approximately 10% of the
public float of 7,542,474 Shares as at May
7, 2024, during the twelve-month period commencing
May 21, 2024 and ending May 20, 2025. As at May 7,
2024 there were 10,523,857 Shares issued and outstanding.
Under the normal course issuer bid, other than purchases made under
block purchase exemptions, K-Bro may purchase up to 2,080 Shares on
the TSX during any trading day, which represents approximately 25%
of 8,323 Shares, which represents the average daily trading volume
on the TSX for the most recently completed six calendar months
prior to the TSX's acceptance of the notice of the normal course
issuer bid. Any Shares purchased under the normal course issuer bid
will be cancelled.
The Corporation's prior normal course issuer bid commenced on
May 18, 2023 and will expire on
May 17, 2024, under which the
Corporation was authorized to purchase for cancellation up to
881,481 Shares. Under this normal course issuer bid, as of
May 7, 2024, K-Bro purchased 310,678
Shares by means of open market transactions, through the facilities
of the TSX, other markets and alternative Canadian trading systems,
at a weighted average price of $33.40
per Share.
Although K-Bro intends to purchase Shares under its normal
course issuer bid, there can be no assurances that any such
purchases will be completed. Any purchases made under the normal
course issuer bid will be made by K-Bro subject to favourable
market conditions at the prevailing market price at the time of
acquisition and through the facilities of the TSX. K-Bro intends to
enter into an automatic purchase plan to be effective May 21, 2024 during the term of the normal course
issuer bid. The automatic purchase plan will allow for purchases by
K-Bro of Shares during certain pre-determined blackout periods.
CORPORATE PROFILE
K-Bro is the largest owner and operator of laundry and linen
processing facilities in Canada.
K-Bro provides a comprehensive range of general linen and operating
room linen processing, management and distribution services to
healthcare institutions, hotels and other commercial accounts.
K-Bro currently operates ten processing facilities and two
distribution centres under two distinctive brands, including K-Bro
Linen Systems Inc. and Buanderie HMR, in ten Canadian cities:
Québec City, Montréal, Toronto,
Regina, Saskatoon, Prince
Albert, Edmonton,
Calgary, Vancouver and Victoria.
Fishers was established in 1900 and is an operator of laundry
and linen processing facilities in Scotland, providing linen rental, workwear
hire and cleanroom garment services to the hospitality, healthcare,
manufacturing and pharmaceutical sectors. Fishers' client base
includes major hotel chains and prestigious venues across
Scotland and the North of
England. The company operates in
Scotland and the North of
England with facilities in
Cupar, Perth, Newcastle, Livingston and Coatbridge.
Shortridge has operated as a family run business since the 1990s
and is based in Cumbria, with
plants in Lillyhall, Dumfries and
a distribution depot in Darlington. It specializes in providing high
quality laundry services to local independent hospitality
businesses, including hotels, B&Bs, self-catering units and
restaurants.
Additional information regarding the Corporation including
required securities filings are available on our website at
www.k-brolinen.com and on the Canadian Securities Administrators'
website at www.sedarplus.ca; the System for Electronic Document
Analysis and Retrieval + ("SEDAR+").
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING
STATEMENTS
All statements in this press release that do not relate to
historical facts constitute forward-looking statements. These
statements represent K-Bro's intentions, plans, expectations and
beliefs, and are subject to certain risks and uncertainties that
could result in actual results differing materially from these
forward-looking statements. These risks and uncertainties are more
fully described in securities filings that can be obtained on
SEDAR+.
The TSX has not reviewed and does not accept responsibility for
the adequacy or accuracy of this statement.
SOURCE K-Bro Linen Inc.