NORTH PLAINS, Ore., July 13, 2011 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. ("Jewett- Cameron") (NASDAQ: JCTCF; TSX: JCT) today is pleased to announce that its Board of Directors has authorized the implementation of a share repurchase plan to purchase for cancellation up to 300,000 common shares through facilities of the NASDAQ Stock Market ("NASDAQ"). This amount represents approximately 16% of the approximately 1.9 million common shares outstanding. During 2010 and 2011 year-to-date, the Company repurchased 472,020 shares under prior formal plans of repurchase.
Transactions may involve the Jewett-Cameron Trading Company Ltd. Employee Stock Ownership Plan. Transactions may also involve Jewett- Cameron insiders or their affiliates executed in compliance with Jewett- Cameron's Insider Trading Policy.
The share repurchase plan will be effected in accordance with Rule 10b-18 under the U.S. Securities Exchange Act of 1934, which contains restrictions on the number of shares that may be purchased on a single day, subject to certain exceptions for block purchases, based on the average daily trading volumes ("ADTV") of Jewett- Cameron's shares on NASDAQ. Purchases shall be limited to one "Block" purchase per week in lieu of the 25% of ADTV limitation for compliance with Rule 10b-18(b)(4). A "block" as defined under Rule 10b-18(a)(5) means a quantity of stock that, among other things, is at least 5,000 shares and has a purchase price of at least US$50,000.
This share repurchase plan may commence on July 25, 2011 and will remain in place until October 21, 2011 but may be limited or terminated at any time without prior notice.The share repurchase program was approved by the Company's Board of Directors as part of its ongoing consideration of alternative ways to leverage the Company's strong cash position. The Board of Directors believes that a share repurchase program at this time is in the best interests of the Company and its shareholders, and will not impact the Company's ability to execute its growth plans.