Shoppers Drug Mart Corporation receives TSX approval to renew normal course issuer bid
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