The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from CNW Group

Colabor Group announces the renewal of its normal course issuer bid

Wednesday, October 26, 2011

Colabor Group announces the renewal of its normal course issuer bid09:00 EDT Wednesday, October 26, 2011/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S./BOUCHERVILLE, QC, Oct. 26, 2011 /CNW Telbec/ - October 26, 2011 - Colabor Group Inc. (TSX: GCL) ("Colabor") announces today that the Toronto Stock Exchange (the "TSX") has accepted Colabor's notice of intention to make a normal course issuer bid (the "Notice") to purchase some of its outstanding ordinary shares ("Shares") through the facilities of the TSX for a period of twelve months ending on October 27, 2012.  Up to 500,000 Shares, representing approximately 2.87% of the public float of the Shares on October 14, 2011, may be purchased under the bid.  As of October 14, 2011, 22,796,590 Shares are issued and outstanding, of which 17,389,115 are comprised in the public float.  Daily repurchases (other than through the block purchase exception) will be limited to 18,487 Shares.  The purchases may commence on October 28, 2011 and may extend to October 27, 2012 or on such earlier date as Colabor may complete its purchases pursuant to the Notice or otherwise terminate the bid.  The number of Shares that Colabor intends to repurchase and the time of such repurchases will be determined by Colabor, at its discretion.In the opinion of Colabor's management, this normal course issuer bid is justified by the fact that the Shares might be undervalued on the market from time to time with regard to Colabor's financial position and future prospects and that the purchase thereof by Colabor is an appropriate use of its funds.All the Shares acquired under the bid will be purchased through the facilities of the TSX in accordance with its requirements.  All Shares acquired will automatically be cancelled.  The Shares will be purchased at their market price at the time of the acquisition.  Colabor has purchased a total of 351,800 Shares at an average price of $9.06 during the previous twelve-month period.Colabor is a wholesaler and distributor of food and non-food products serving the retail market (grocery stores, convenience stores, etc.) and food-service market (cafeterias, restaurants, hotels, restaurant chains, etc.), in Quebec, Ontario and the Atlantic provinces.Additional information can be found in the information documents filed by the Colabor Group Inc. with securities regulators, at REGARDING FORWARD-LOOKING STATEMENTSThis press release contains forward-looking statements relating to the securities of Colabor, including the purpose, volume and manner of purchases of Shares by Colabor under its normal course issuer bid.  Such forward-looking statements are subject to certain risks and uncertainties, and actual results or events may differ materially.  Consequently, readers should not place any undue reliance on such forward-looking statements.  The forward-looking statements relate to the date on which they were made.  Colabor disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise unless required by applicable laws.For further information: Colabor Group Inc.      Mr. Gilles C. Lachance     President and Chief Executive Officer   (450) 449-0026, extension 265    Colabor Group Inc. Mr. Michel Loignon, CA Vice President and Chief Financial Officer (450) 449-0026, extension 235