Company confirms cancellation of 2.43
million shares, resulting in a 7.4% reduction in total shares
outstanding
LUNENBURG, NS, June 6, 2024
/CNW/ - High Liner Foods Incorporated (TSX: HLF) ("High Liner
Foods" or the "Company"), a leading North American value-added
frozen seafood company, today announced that it has completed the
previously announced settlement (the "Settlement") of the legal
proceedings the Company initiated against Mr. Brian Wynn and the other vendors in connection
with the sale of Rubicon Resources, LLC ("Rubicon").
"With the completion of the Settlement, we have now cancelled
2.43 million shares of the Company issued in connection with the
acquisition of Rubicon, representing a reduction of approximately
7.4% of total shares outstanding," said Paul Jewer, President and Chief Executive
Officer of High Liner Foods. "We are very pleased our shareholders
will experience the immediate positive benefit this has on
shareholder value and the Company's earnings per share."
In accordance with the terms of the Settlement, 2,429,014 shares
of the Company issued in connection with the acquisition of Rubicon
will be cancelled, resulting in 30,428,600 total shares outstanding
as of today. Based on a closing share price of CAD $13.32 on June 5,
2024 and an exchange rate of 1.37045 with the U.S. dollar,
the cancelled shares are worth approximately USD $23.6 million.
In addition, as part of the Settlement, Mr. Wynn and the other
settling Rubicon vendors collectively paid a total of approximately
USD $5.79 million. Of that total, USD
$5.65 million went to reimburse funds
received from a previous representations and warranties insurance
claim settlement. The remainder was paid to the Company.
Forward Looking Information
This press release contains forward-looking information within
the meaning of applicable securities laws, including, but not
limited to, statements concerning the Settlement and associated
benefits to shareholders, including earnings per share.
Forward-looking statements are based on information currently
available to the Company and management's estimates, expectations
and assumptions, which we believe are reasonable as of the current
date but may prove to be incorrect. These statements are also
subject to risks and uncertainties. Actual results or events may
differ materially from those expressed or implied by such
forward-looking statements. Additional information about these
assumptions, risks and uncertainties is included in the Company's
securities regulatory filings, including under the headings "Risk
Factors" and "Forward-Looking Information" in the Company's annual
Management's Discussion & Analysis, which can be found under
the Company's profile on SEDAR+ at www.sedarplus.ca. Undue reliance
should not be placed on this forward-looking information, which
applies only as of the date hereof, and the Company does not
undertake to update or revise any forward-looking information,
whether as a result of any new information, future events or
otherwise, except as may be required by applicable law.
About High Liner Foods Incorporated
High Liner Foods Incorporated is a leading North American
processor and marketer of value-added frozen seafood. High Liner
Foods' retail branded products are sold throughout the United
States and Canada under the High
Liner, Fisher Boy, Mirabel, Sea Cuisine,
and Catch of the Day labels, and are available in most
grocery and club stores. The Company also sells branded products to
restaurants and institutions under the High
Liner, Mirabel, Icelandic Seafood
and FPI labels and is a major supplier of private label
value-added seafood products to North American food retailers and
foodservice distributors. High Liner Foods is a publicly traded
Canadian company, trading under the symbol HLF on the Toronto Stock
Exchange.
For further information about the Company, please visit our
website at www.highlinerfoods.com or send an e-mail to
investor@highlinerfoods.com.
SOURCE High Liner Foods Incorporated
