VANCOUVER, BC, July 27, 2023 /CNW/ - Premium Brands Holdings Corporation (TSX: PBH) (the "Company") announced today that it has received approval from the Toronto Stock Exchange (the "TSX") respecting the renewal of its normal course issuer bid ("NCIB").
Pursuant to the NCIB documentation filed with the TSX, the Company may purchase up to 2,231,469 common shares, representing 5% of the Company's 44,629,382 issued and outstanding common shares as of July 19, 2023. The purchases may commence on July 31, 2023 and will terminate no later than July 30, 2024. Except for block purchases permitted under the rules and policies of the TSX, the number of shares to be purchased per day will not exceed 12,308, which represents 25% of the average daily trading volume for the six full calendar months ending June 30, 2023, which is 49,232 shares. The Company will make the purchases on the open market through the facilities of the TSX or any alternative Canadian trading system, and the prices that the Company will pay for any common shares will be the market price of such shares at the time of acquisition. All shares purchased by the Company will be cancelled.
The renewal of the NCIB will follow the conclusion of the Company's previous NCIB that expired on July 25, 2023, under which the Company was authorized to purchase 2,239,887 common shares. From July 26, 2022 to July 25, 2023, the Company purchased 184,586 common shares at a weighted average trading price of $81.77 per share. All shares purchased by the Company under the previous NCIB were made on the open market through the facilities of the TSX or alternative trading systems in Canada and were cancelled.
The Company also announced today that, in connection with its intention to renew the NCIB, the Company has also renewed its automatic share purchase plan (the "ASPP") with a designated broker to allow for the purchase of common shares under the NCIB at times when the Company would ordinarily not be permitted to purchase shares due to regulatory restrictions and customary self-imposed blackout periods.
The ASPP will renew upon the renewal of the NCIB and will terminate on the earliest of the date on which: (a) the maximum annual purchase limit under the NCIB has been reached; (b) the NCIB expires; or (c) the Company terminates the ASPP in accordance with its terms. The ASPP constitutes an "automatic securities purchase plan" under applicable Canadian securities laws.
The Company is renewing the NCIB because it believes that, from time to time, the prevailing market price of the Company's common shares may not adequately reflect the underlying value of the Company, and that purchasing common shares for cancellation will increase the proportionate interest of, and be advantageous to, all remaining shareholders.
About Premium Brands
Premium Brands owns a broad range of leading specialty food manufacturing and differentiated food distribution businesses with operations across Canada, the United States and Italy.
www.premiumbrandsholdings.com
Forward Looking Statements
This press release contains forward looking statements with respect to the Company, including, without limitation, the anticipated benefits of the NCIB and the number of common shares that may be purchased under the NCIB. While management believes that the expectations reflected in such forward looking statements are reasonable and represent the Company's internal expectations and beliefs as of July 27, 2023, there can be no assurances that such expectations will prove to be correct as such forward looking statements involve unknown risks and uncertainties beyond the Company's control which may cause the actual results, performance and achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Such risks and uncertainties include, without limitation, market reaction to the NCIB and those assumptions outlined in the Company's Management's Discussion and Analysis for the 13 weeks ended April 1, 2023 under Risks and Uncertainties, which is filed electronically through SEDAR and available online at www.sedar.com.
Unless otherwise indicated, the forward looking statements in this press release are made as of the date hereof and, except as required by applicable law, will not be publicly updated or revised. This cautionary statement expressly qualifies the forward looking information in this press release.
SOURCE Premium Brands Holdings Corporation
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