#Canada #Mississauga #Maple Leaf Foods #Toronto Stock Exchange #Issuer Bid

Maple Leaf Foods Launches New Issuer Bid

Maple Leaf Foods Inc., a prominent name in the protein market, has recently gained approval from the Toronto Stock Exchange (TSX) to implement a normal course issuer bid (NCIB) program. This decision, announced on March 11, 2025, is a significant step in the company’s ongoing investment strategy and demonstrates its commitment to maximizing shareholder value.

Details of the NCIB Program

The NCIB program is set to commence on March 13, 2025, and will run until March 12, 2026, or until the company has completed its share purchases per the notice filed with the TSX. Under this program, Maple Leaf Foods is authorized to buy back up to 7,300,000 common shares from the open market, accounting for approximately 9.8% of the public float as of March 2, 2025. This figure is based on the 123,835,056 common shares that were outstanding at the time.

The decision to initiate the NCIB was made after careful consideration of the company’s share performance, with management asserting that the stock price may not always reflect the company's true value. By repurchasing shares, Maple Leaf Foods aims to enhance its capital structure and provide an efficient use of the funds available.

Previous Issuer Bid Insights

Prior to this NCIB announcement, Maple Leaf Foods had already conducted a similar issuer bid program, approved on May 23, 2023. However, during that period, the company did not repurchase any shares, indicating the strategic nature of their market evaluations and the timing of share buybacks.

As per the requirements of the TSX, any shares repurchased under this new NCIB will be canceled, and purchases made on any given day will be limited to a maximum of 51,323 shares, unless the “block purchase exception” applies. The price for these shares will be the market price at the time of acquisition, underlining the company's commitment to maintaining a structured approach to share repurchasing.

The Value of Repurchasing Shares

Maple Leaf Foods views the repurchase of shares as a strategic maneuver to ensure shareholder interests are protected, particularly when market conditions lead to undervaluation. This approach aligns with broader corporate governance and financial management strategies observed in many publicly traded companies.

About Maple Leaf Foods

Headquartered in Mississauga, Ontario, Maple Leaf Foods Inc. is recognized as a leading protein company, producing a diverse range of food products under several notable brands such as Maple Leaf®, Schneiders®, and Lightlife®. The company employs approximately 13,000 individuals and conducts its business primarily in Canada, the U.S., and Asia, showcasing its expansive reach in the global market.

The recent approval for the NCIB program marks an essential moment in Maple Leaf’s journey as it continues to navigate the complexities of the protein industry while prioritizing its shareholders. As the program unfolds, all eyes will be on the company’s strategic share purchases and their implications for overall market positioning.

Forward-Looking Statements: It is essential to note that statements made by Maple Leaf Foods about future activities or performance are not guarantees and are subject to various risks and uncertainties. Investors are encouraged to keep abreast of the company's filings available through the appropriate regulatory bodies for a comprehensive understanding of potential risks associated with their investments.