MISSISSAUGA, ON, Maple Leaf Foods Inc. (the "Company") (TSX:MFI) announced that the Toronto Stock Exchange (the "TSX") has accepted the notice filed by the Company to establish a normal course issuer bid ("NCIB") program.
The NCIB program commences on May 25, 2023 and will terminate on May 24, 2024, or on such earlier date as the Company may complete its purchases pursuant to a Notice of Intention filed with the TSX. Under the NCIB program, the Company is authorized to purchase up to 7,200,000 of its common shares (out of the 121,974,702 common shares outstanding as at May 15, 2023) representing approximately 10% of the public float as at May 15, 2023, by way of normal course purchases effected through the facilities of the TSX and/or alternative Canadian trading systems. The average daily trading volume for the six months ended April 28, 2023 was 225,015 common shares. Common shares purchased by the Company will be cancelled. Pursuant to the terms of a previous normal course issuer bid approved by the TSX on May 19, 2022, the Company was authorized to repurchase up to 7,500,000 shares. The Company repurchased an aggregate of 3,111,700 common shares on the TSX and on alternative Canadian trading systems during such normal course issuer bid at a weighted average price of $24.0016 per share for cancellation during the period commencing on May 25, 2022 and ending on May 24, 2023.
In deciding to establish the NCIB, the Company believes that the market price of the common shares may not, from time to time, fully reflect their value and accordingly the purchase of the common shares would be in the best interest of the Company and an attractive and appropriate use of available funds.
Purchases will be made by the Company in accordance with the requirements of the TSX and the price which the Company will pay for any such common shares will be the market price of any such common shares at the time of acquisition, or such other price as may be permitted by the TSX. Shares will be repurchased in accordance with management's discretion, subject to applicable law. For purposes of the TSX rules, a maximum of 56,253 common shares may be purchased by the Company on any one day under the bid, except where purchases are made in accordance with the "block purchase exception" of the TSX rules.
Source : Newswire.ca