TORONTO, ON and TAMPA, FL--(Marketwired - May 16, 2014) - Cott Corporation ("Cott") (NYSE: COT) (TSX: BCB) today announced the Toronto Stock Exchange (the "TSX") has approved its notice of intention to renew its normal course issuer bid for a portion of its common shares ("Common Shares") as appropriate opportunities arise from time to time. Cott's normal course issuer bid will be made in accordance with the requirements of the TSX and Rule 10b-18 of the Securities Exchange Act of 1934.
As of May 13, 2014, 94,328,224 Common Shares were outstanding. Pursuant to the notice, the maximum amount that Cott may acquire is 4,716,411 Common Shares, being 5% of the issued and outstanding Common Shares of Cott as of May 13, 2014, commencing on May 22, 2014, following the expiration of Cott's currently effective share repurchase program on May 21, 2014, and ending on May 21, 2015. Potential purchases will be made through the facilities of the TSX, the New York Stock Exchange ("NYSE") and other alternative Canadian and U.S. trading platforms and in accordance with applicable regulatory requirements. The price which Cott will pay for any Common Share will be the market price of such Common Share at the time of acquisition. Pursuant to the TSX rules, the maximum number of Common Shares that may be repurchased during the same trading day on the TSX is 23,966 Common Shares, which is 25% of 95,867 (the average daily trading volume for Cott's Common Shares on the TSX for the six months ended April 30, 2014), subject to certain exceptions for block repurchases. Rule 10b-18 contains similar restrictions on daily purchases that may be made by Cott on the NYSE based on the average daily trading volume of Cott's common shares on the NYSE, subject to certain exceptions for block purchases. The Common Shares will be cancelled upon their purchase by Cott. Cott will fund the purchases through cash on hand. Cott believes that the purchase by Cott of a portion of outstanding Common Shares is an appropriate use of available cash and is in the best interests of Cott and its shareowners.
The notice of intention provides that no appraisal or valuation regarding Cott, its material assets or securities, has been prepared within the two years preceding the date of the notice.
To the knowledge of Cott, no director, senior officer or other insider of Cott currently intends to sell any Common Shares under the bid. However, sales by such persons through the facilities of the TSX or NYSE may occur if the personal circumstances of any such person change or any such person makes a decision unrelated to these normal course purchases. The benefits to any such person whose Common Shares are purchased would be the same as the benefits available to all other securityholders whose Common Shares are purchased.
Cott will enter into an automatic purchase plan in relation to purchases under the normal course issuer bid in the U.S. only. The automatic purchase plan will allow for the purchase of Common Shares, subject to certain trading parameters, at times when Cott ordinarily would not be active in the market due to its own internal trading black-out period, insider trading rules or otherwise. Outside of these periods, Common Shares may also be repurchased in accordance with management's discretion and in compliance with applicable law.
As of May 13, 2014, 1,301,480 Common Shares at a weighted average trading price of $8.00 per Common Share were purchased under Cott's currently effective share repurchase program.
About Cott Corporation
Cott is one of the world's largest producers of beverages on behalf of retailers, brand owners and distributors. Cott produces multiple types of beverages in a variety of packaging formats and sizes, including carbonated soft drinks, 100% shelf stable juice and juice-based products, clear, still and sparkling flavored waters, energy products, sports products, new age beverages, and ready-to-drink teas, as well as alcoholic beverages for brand owners. Cott's large manufacturing footprint, substantial research and development capability and high-level of quality and customer service enables Cott to offer its customers a strong value-added proposition of low cost, high quality products. With approximately 4,000 employees, Cott operates manufacturing facilities in the United States, Canada, the United Kingdom and Mexico. Cott also develops and manufactures beverage concentrates, which it exports to over 50 countries around the world.
Safe Harbor Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 conveying management's expectations as to the future based on plans, estimates and projections at the time Cott makes the statements. Forward-looking statements involve inherent risks and uncertainties and Cott cautions you that a number of important factors could cause actual results to differ materially from those contained in any such forward-looking statement. The forward-looking statements contained in this press release include, but are not limited to, statements related to the amount of shares that may be repurchased under the share repurchase program. The forward-looking statements are based on assumptions regarding management's current plans and estimates. Management believes these assumptions to be reasonable but there is no assurance that they will prove to be accurate.