Courtesy of Benzinga.
Leading Brands, Inc. (Nasdaq: LBIX) announced the commencement of its previously announced modified “Dutch auction” tender offer to repurchase up to US$800,000 of its common shares at a price per share not less than US$4.10 and not greater than US$5.00 (in increments of US$0.10). The tender offer will expire at 5:00 p.m., New York City time, on Monday, June 18, 2012, unless extended by the Company. Tenders of shares must be made on or prior to the expiration of the tender offer and may be withdrawn at any time prior to the expiration of the tender offer, in each case, in accordance with the procedures described in the tender offer materials.
A modified “Dutch auction” tender offer allows shareholders to indicate how many shares and at what price within the Company’s specified range they wish to tender. Based on the number of shares tendered and the prices specified by the tendering shareholders, the Company will determine the lowest price per share within the range that will enable the Company to purchase US$800,000 of its common shares, or such lesser number of shares that are properly tendered. The Company also reserves the right to purchase up to an additional 2% of its common shares outstanding without amending or extending the tender offer. All shares accepted for payment will be purchased at the same price, regardless of whether a shareholder tendered such shares at a lower price within the range. If, based on the final purchase price determined in the tender offer, more than US$800,000 in value of common shares are properly tendered and not properly withdrawn, then the Company will purchase shares tendered at or below the per share purchase price on a pro rata basis as specified in the offer to purchase. Shareholders whose shares are purchased in the tender offer will be paid the determined purchase price in cash, less any applicable withholding taxes and without interest, after the expiration of the tender offer.
For more Benzinga, visit Benzinga Professional Service, Value Investor, and Stocks Under $5.
