KITCHENER, ON, Jan. 8, 2020 /CNW/ - Waterloo Brewing Ltd. ("Waterloo Brewing" or the "Company") (TSX: WBR) today announced that it has filed with the Toronto Stock Exchange ("TSX"), and the TSX has accepted, a notice of intention to make a normal course issuer bid (the "NCIB") permitting Waterloo Brewing to purchase for cancellation up to 1,000,000 common shares ("Shares") over a 12-month period, representing approximately 2.8% of the 35,221,493 Shares outstanding as of December 31, 2019.
The NCIB will commence on January 10, 2020 and terminate on January 9, 2021, or such earlier date on which purchases under the NCIB have been completed. Purchases of Shares under the NCIB will be made through the facilities of the TSX or other alternative Canadian trading systems at the market price of the Shares at the time of acquisition. The average daily trading volume of the Shares for the six months ended December 31, 2019 is 9,548 Shares. The maximum number of Shares that may be purchased on a daily basis, subject to any approved exceptions, will be 2,387 Shares. Shares purchased under the NCIB will be cancelled. During the last twelve months, the Company purchased 359,600 Shares for cancellation through the facilities of the TSX at a volume weighted average trading price of $3.44 per Share under a normal course issuer bid which provided for the purchase for cancellation of up to 1,000,000 Shares and expires on January 9, 2020.
Waterloo Brewing has entered into an automatic share purchase plan with a broker in connection with the NCIB to allow for the purchase of Shares during certain pre-determined blackout periods. Outside of these pre-determined blackout periods, Shares will be purchased at the discretion of senior management of Waterloo Brewing.
Waterloo Brewing believes that the Shares may from time to time trade in a price range that does not adequately reflect the value of the Shares in relation to its activities and future prospects. As a result, Waterloo Brewing believes that the purchase of Shares, from time to time, would be an appropriate use of corporate funds in light of potential benefits to remaining shareholders.
About Waterloo Brewing
Waterloo Brewing is Ontario's largest Canadian-owned brewery. The Company is a regional brewer of award-winning premium qualify and value beers and is officially certificated under the Global Food Safety Standard, one of the highest and most internationally recognized standards for safe food production. Founded in 1984 as Brick Brewing Co., the company was the first craft brewery to start up in Ontario and is credited with pioneering the present-day craft brewing renaissance in Canada. Waterloo Brewing has complemented its Waterloo premium craft beers with the popular Laker brand. In 2011, Waterloo Brewing purchased the Canadian rights to Seagram Coolers and in 2015, secured the exclusive Canadian rights to both LandShark® and Margaritaville®. In addition, Waterloo Brewing utilizes its leading-edge brewing, blending and packaging capabilities to provide an extensive array of contract manufacturing services in beer, coolers and ciders. Waterloo Brewing trades on the TSX under the symbol WBR. Visit us at www.waterloobrewing.com.
All statements in this press release that do not directly and exclusively relate to historical facts constitute forward-looking statements as of the date of this press release. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "anticipate", "seek", "plan", "believe" or "continue" or the negatives of these terms or variations of them or similar terminology. Such statements relate to, among other things, the Company's intention to purchase Shares pursuant to the NCIB, the Company's belief that the Shares may from time to time be undervalued and that purchases of Shares under the NCIB will provide benefits to shareholders. Although the Company believes that the expectations and assumptions reflected in these forward-looking statements are reasonable, undue reliance should not be placed on these forward-looking statements, which are not guarantees and are subject to certain risks, uncertainties and assumptions, which may cause actual performance and financial results to differ materially from such forward-looking statements. The forward-looking statements included in this press release are made only at the date of this press release and, except as required by applicable securities laws, the Company does not undertake to publicly update such forward-looking statements to reflect new information, future events or otherwise.
SOURCE Waterloo Brewing Ltd.