Ms. Tammy Smitham reports
SHOPPERS DRUG MART CORPORATION RECEIVES TSX APPROVAL TO RENEW NORMAL COURSE ISSUER BID
The Toronto Stock Exchange has accepted the notice filed by Shoppers Drug Mart Corp. to renew its normal course
issuer bid program. The renewed normal course
issuer bid program commences on
Feb. 15, 2013, and will terminate on Feb. 14, 2014, or on such
earlier date as the company may complete its purchases pursuant to a
notice of intention filed with the TSX. Under the renewed normal course
issuer bid program,
the company is authorized to purchase up to 10.2 million of its common
shares, representing approximately 5 per cent of the 204,071,196 common
shares outstanding as at Feb. 6, 2013, by way of normal course
purchases effected through the facilities of the TSX. Common shares
purchased by the company will be cancelled.
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. In connection with the normal course
issuer bid program, the company
intends to enter into an automatic purchase plan with its designated
broker to allow for purchases of its common shares during certain
predetermined blackout periods, subject to certain parameters as to
price and number of shares. Outside of these predetermined blackout
periods, shares will be repurchased in accordance with management's
discretion, subject to applicable law. For purposes of the TSX rules,
a maximum of 146,845 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.
Under its previously approved normal course
issuer bid program that will expire on Feb. 14, 2013, as of Feb. 6, 2013, the company had repurchased 8,308,900
common shares at a total cost of $346-million, representing an
average repurchase price of $41.60 per common share. Of the
repurchased common shares, 8,168,900 shares were subsequently cancelled, with the
remaining 140,000 repurchased common shares expected to be cancelled on
Feb. 28, 2013.
The company is renewing the normal course
issuer bid program because it believes that, from
time to time, the market price of its common shares may be attractive
and that, at such times, the purchase of common shares would be in the
best interest of the company and an appropriate use of corporate funds
in light of potential benefits to remaining shareholders.
We seek Safe Harbor.
© 2013 Canjex Publishing Ltd. All rights reserved.