(All amounts are stated in thousands of Canadian dollars, except per share amounts.)
BRAMPTON, Ontario, Sept. 05, 2018 (GLOBE NEWSWIRE) -- Brampton Brick Limited (“BBL” or the “Company”) (TSX:BBL.A) announced today that the Toronto Stock Exchange (the “Exchange”) has accepted a notice filed by BBL of its intention to make a Normal Course Issuer Bid (the “Bid”).
The notice provides that, during the 12 month period commencing September 7, 2018 and ending September 6, 2019, BBL may purchase on the Exchange up to 461,431 Class A Subordinate Voting shares in total, being approximately 5% of the total number of Class A Subordinate Voting shares outstanding as of August 31, 2018, the date of the notice of the Bid. The price which BBL will pay for any such shares will be the market price at the time of acquisition. The actual number of Class A Subordinate Voting shares which may be purchased pursuant to the Bid and the timing of any such purchases will be determined by management of BBL. As at August 31, 2018 there were 9,228,623 Class A Subordinate Voting shares and 1,738,631 Class B Multiple Voting shares outstanding. The average daily trading volume of Class A Subordinate Voting shares (“ADTV”) for the most recently completed six month ended August 31, 2018) is 779. The maximum number of Class A Subordinate Voting shares that may be purchased in one day pursuant to the Bid is the greater of 1,000 and 25% of ADTV; as such, given that the ADTV is 779, such daily maximum under the Bid will be 1,000. All Class A Subordinate Voting share purchases will be made through the facilities of the TSX on the open market or by way of block purchases effected in accordance with the requirements of the TSX, and will be purchased for cancellation.
BBL believes that its Class A Subordinate Voting shares have been trading in a price range which does not adequately reflect the value of such shares in relation to the business of BBL and its future business prospects. As a result, depending upon future price movements and other factors, BBL believes that its outstanding Class A Subordinate Voting shares may represent an attractive investment to BBL. Furthermore, the purchases are expected to benefit all persons who continue to hold Class A Subordinate Voting shares by increasing their equity interest in BBL.
Under the Company’s previous Bid that expired on July 16, 2018, BBL was permitted to purchase up to 461,756 Class A Subordinate Voting Shares, and purchased 6,500 Class A Subordinate Voting Shares at a weighted average price of $8.19 per share.
Cautionary Statement Regarding Forward-Looking Information
Certain statements contained herein constitute “forward-looking statements”. All statements that are not historical facts are forward-looking statements, including statements regarding future plans, objectives, results, business outlook and financial performance. There can be no assurance that such forward-looking statements will prove to be accurate.
Such forward-looking statements are based on information currently available to management, and are based on assumptions and analyses made by management in light of its experience and its perception of historical trends, current conditions and expected future developments, including, among others, assumptions regarding pricing, weather and seasonal expectations, production efficiency, and there being no significant disruptions affecting operations or other material adverse changes.
Such forward-looking statements also involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward- looking statements. Such risks and uncertainties include, among others: changes in economic conditions, including the demand for the Company’s primary products and the level of new home, commercial and other construction; large fluctuations in production levels; fluctuations in energy prices and other production costs; changes in transportation costs; foreign currency exchange and interest rate fluctuations; legislative and regulatory developments; as well as those assumptions, risks, uncertainties and other factors identified and discussed above under “Risks and Uncertainties” in the 2017 annual MD&A included in the Company’s 2017 Annual Report and those identified and reported in the Company’s other public filings (including the Annual Information Form for the year ended December 31, 2017), which may be accessed at www.sedar.com.
The forward-looking information contained herein is made as of the date hereof. Other than as specifically required by law, the Company undertakes no obligation to update or revise any forward- looking information, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on forward-looking statements.
About Brampton Brick Limited
Brampton Brick Limited is Canada’s second largest manufacturer of clay brick, serving markets in Ontario, Quebec and the Northeast and Midwestern United States from its brick manufacturing plants located in Brampton, Ontario and Farmersburg, Indiana. To complement the clay brick product line, the Company also manufactures a range of concrete masonry products, including concrete brick and block as well as stone veneer products. Concrete interlocking paving stones, retaining walls, garden walls and enviro products are manufactured in Markham, Hillsdale, Brockville and Brampton, Ontario, in Boisbriand, Quebec and in Wixom, Michigan and sold to markets in Ontario, Quebec, Michigan, New York, Pennsylvania, Ohio, Kentucky, Illinois and Indiana under the Oaks™ trade name. The Company’s products are used for residential construction and for industrial, commercial, and institutional building projects.
For more information please contact:
Brampton Brick Limited
Trevor M. Sandler Vice-President, Finance and Chief Financial Officer
905-840-1535
905-840-1011
investor.relations@bramptonbrick.com