Kitchener, Ontario – Brick Brewing Co. Limited (“Brick” or the “Company”) (TSX: BRB), Ontario’s largest Canadian-owned brewery, today announced that it has received approval from the Toronto Stock Exchange (“TSX”) to renew its normal course issuer bid (the “NCIB”) permitting Brick to purchase for cancellation up to 1,700,000 common shares (“Shares”) over a 12-month period, representing 4.8% of the Shares outstanding as of April 13, 2016.
The NCIB will commence on April 25, 2016 and terminate on April 24, 2017, 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 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 March 31, 2016 is 13,578 Shares. The maximum number of Shares that may be purchased on a daily basis, subject to any approved exceptions, will be 3,394 Shares. Shares purchased under the NCIB will be cancelled.
During the last twelve months, the Company purchased 204,200 Shares for cancellation at a volume weighted average price of $1.65 per Share under a normal course issuer bid which expires on April 23, 2016.
Brick 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. The broker has been instructed not to commence purchases prior to May 11, 2016. Outside of these pre-determined blackout periods, Shares will be purchased at the discretion of senior management of Brick.
Brick 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, Brick believes that the purchase of Shares, from to time, would be an appropriate use of corporate funds in light of potential benefits to remaining shareholders.