TORONTO, Feb. 13, 2013 /CNW/ - Shoppers Drug Mart Corporation (the
"Company") announced today that the Toronto Stock Exchange (the "TSX")
has accepted the notice filed by the Company to renew its normal course
issuer bid ("NCIB") program. The renewed NCIB program commences on
February 15, 2013 and will terminate on February 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 NCIB program,
the Company is authorized to purchase up to 10,200,000 of its common
shares, representing approximately 5.0% of the 204,071,196 common
shares outstanding as at February 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 NCIB 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
pre-determined black-out periods, subject to certain parameters as to
price and number of shares. Outside of these pre-determined black-out
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 NCIB program that will expire on February
14, 2013, as of February 6, 2013 the Company had repurchased 8,308,900
common shares at an aggregate cost of $346 million, representing an
average repurchase price of $41.60 per common share. 8,168,900 of the
repurchased common shares were subsequently cancelled, with the
remaining 140,000 repurchased common shares expected to be cancelled on
February 28, 2013.
The Company is renewing the NCIB 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.
About Shoppers Drug Mart Corporation
Shoppers Drug Mart Corporation is one of the most recognized and trusted
names in Canadian retailing. The Company is the licensor of
full-service retail drug stores operating under the name Shoppers Drug
Mart (Pharmaprix in Québec). With more than 1,240 Shoppers Drug Mart
and Pharmaprix stores operating in prime locations in each province and
two territories, the Company is one of the most convenient retailers in
Canada. The Company also licenses or owns 55 medical clinic pharmacies
operating under the name Shoppers Simply Pharmacy (Pharmaprix
Simplement Santé in Québec) and six luxury beauty destinations
operating as Murale. As well, the Company owns and operates 62
Shoppers Home Health Care stores, making it the largest Canadian
retailer of home health care products and services. In addition to its
retail store network, the Company owns Shoppers Drug Mart Specialty
Health Network Inc., a provider of specialty drug distribution,
pharmacy and comprehensive patient support services, and MediSystem
Technologies Inc., a provider of pharmaceutical products and services
to long-term care facilities.
For more information, visit www.shoppersdrugmart.ca.
Cautionary Statement on Forward-Looking Information
This news release contains forward-looking information and statements
which constitute "forward-looking information" under Canadian
securities law and which may be material, regarding, among other
things, the Company's beliefs, plans, objectives, estimates, intentions
and expectations. Forward-looking information and statements are
typically identified by words such as "anticipate", "believe",
"expect", "estimate", "forecast", "goal", "intend", "plan", "will",
"may", "should", "could" and similar expressions. Specific
forward-looking information in this news release includes statements
with respect to the Company's plans to purchase shares for cancellation
under the NCIB program.
The forward-looking information and statements contained herein are
based on certain factors and assumptions, certain of which appear
proximate to the applicable forward-looking information and statements
contained herein. Inherent in the forward-looking information and
statements are known and unknown risks, uncertainties and other factors
beyond the Company's ability to control or predict, which give rise to
the possibility that the Company's predictions, forecasts, expectations
or conclusions will not prove to be accurate, that its assumptions may
not be correct and that the Company's plans, objectives and statements
will not be achieved. Actual results or developments may differ
materially from those contemplated by the forward-looking information
and statements.
Certain of these risks, factors, estimates and assumptions are described
in more detail in the Company's public filings with provincial
securities regulatory authorities including, without limitation, the
sections entitled "Risks and Risk Management" and "Risks Associated
with Financial Instruments" in the Company's Management's Discussion
and Analysis for the 52 week period ended December 31, 2011, for the 12
week period ended March 24, 2012, for the 12 and 24 week periods ended
June 16, 2012 and for the 16 and 40 week periods ended October 6,
2012. The forward-looking information and statements contained in this
news release represent the Company's views only as of the date hereof.
While the Company anticipates that subsequent events and developments
may cause the Company's views to change, the Company does not undertake
to update any forward-looking information and statements, except to the
extent required by applicable securities laws.
Additional information about the Company, including the Annual
Information Form, can be found at www.sedar.com.
SOURCE: Shoppers Drug Mart Corporation
<p> </p> <p> Media Contact:<br/> Tammy Smitham<br/> Vice President, Communications & Corporate Affairs<br/> (416) 490-2892 </p> <p> Investor Relations:<br/> (416) 493-1220, ext. 5678<br/> <a href="mailto:investorrelations@shoppersdrugmart.ca">investorrelations@shoppersdrugmart.ca</a> </p>