High Liner Foods Completes Rubicon Settlement

Company confirms cancellation of 2.43 million shares, resulting in a 7.4% reduction in total shares outstanding

LUNENBURG, NS, June 6, 2024 /CNW/ - High Liner Foods Incorporated (TSX: HLF) ("High Liner Foods" or the "Company"), a leading North American value-added frozen seafood company, today announced that it has completed the previously announced settlement (the "Settlement") of the legal proceedings the Company initiated against Mr. Brian Wynn and the other vendors in connection with the sale of Rubicon Resources, LLC ("Rubicon").

"With the completion of the Settlement, we have now cancelled 2.43 million shares of the Company issued in connection with the acquisition of Rubicon, representing a reduction of approximately 7.4% of total shares outstanding," said Paul Jewer, President and Chief Executive Officer of High Liner Foods. "We are very pleased our shareholders will experience the immediate positive benefit this has on shareholder value and the Company's earnings per share."

In accordance with the terms of the Settlement, 2,429,014 shares of the Company issued in connection with the acquisition of Rubicon will be cancelled, resulting in 30,428,600 total shares outstanding as of today. Based on a closing share price of CAD $13.32 on June 5, 2024 and an exchange rate of 1.37045 with the U.S. dollar, the cancelled shares are worth approximately USD $23.6 million.

In addition, as part of the Settlement, Mr. Wynn and the other settling Rubicon vendors collectively paid a total of approximately USD $5.79 million. Of that total, USD $5.65 million went to reimburse funds received from a previous representations and warranties insurance claim settlement. The remainder was paid to the Company.

Forward Looking Information

This press release contains forward-looking information within the meaning of applicable securities laws, including, but not limited to, statements concerning the Settlement and associated benefits to shareholders, including earnings per share. Forward-looking statements are based on information currently available to the Company and management's estimates, expectations and assumptions, which we believe are reasonable as of the current date but may prove to be incorrect. These statements are also subject to risks and uncertainties. Actual results or events may differ materially from those expressed or implied by such forward-looking statements. Additional information about these assumptions, risks and uncertainties is included in the Company's securities regulatory filings, including under the headings "Risk Factors" and "Forward-Looking Information" in the Company's annual Management's Discussion & Analysis, which can be found under the Company's profile on SEDAR+ at www.sedarplus.ca. Undue reliance should not be placed on this forward-looking information, which applies only as of the date hereof, and the Company does not undertake to update or revise any forward-looking information, whether as a result of any new information, future events or otherwise, except as may be required by applicable law.

About High Liner Foods Incorporated

High Liner Foods Incorporated is a leading North American processor and marketer of value-added frozen seafood. High Liner Foods' retail branded products are sold throughout the United States and Canada under the High Liner, Fisher Boy, Mirabel, Sea Cuisine, and Catch of the Day labels, and are available in most grocery and club stores. The Company also sells branded products to restaurants and institutions under the High Liner, Mirabel, Icelandic Seafood and FPI labels and is a major supplier of private label value-added seafood products to North American food retailers and foodservice distributors. High Liner Foods is a publicly traded Canadian company, trading under the symbol HLF on the Toronto Stock Exchange.

For further information about the Company, please visit our website at www.highlinerfoods.com or send an e-mail to [email protected].  

SOURCE High Liner Foods Incorporated

Kimberly Stephens, CPA, CA, Vice President, Finance, High Liner Foods Incorporated, Tel: [phone], [email protected]; Jennifer Bell, Vice President, Communications, High Liner Foods Incorporated, Tel: [phone], [email protected]