VANCOUVER, British Columbia, Nov. 16, 2018 (GLOBE NEWSWIRE) — Mr. Peter M. Bull and Arbutus Distributors Ltd. (“Arbutus”), a private company controlled by Mr. Bull, announced today that from January 5, 2016 to November 16, 2018 (the “Reporting Period”) they acquired ownership of a total of 430,839 common shares (the “Acquired Shares”) in the capital of Hardwoods Distribution Inc. (“HDI”), consisting of 420,000 common shares acquired by Arbutus in nine transactions through the facilities of the Toronto Stock Exchange and 10,839 common shares issued to Mr. Bull by HDI as payment for directors fees. HDI is incorporated under the federal laws of Canada and has its head office at #306 – 9440 – 202nd Street, Langley, British Columbia, V1M 4A6.

The Acquired Shares represent an aggregate total of approximately 2.01% of the now issued and outstanding common shares of HDI. Immediately prior to the Reporting Period, Arbutus owned 3,916,700 common shares of HDI, representing 18.25% of the now issued and outstanding common shares of HDI. As of the date of this news release, Arbutus and Mr. Bull (together, the “Offeror”) own 4,347,539 common shares of HDI, representing 20.25% of the now issued and outstanding common shares of HDI. Further particulars of the Offeror’s acquisition of the Acquired Shares are set out in the schedule attached to this news release.

The Offeror acquired the Acquired Shares for investment purposes. Depending on its evaluation of the business, prospects and financial condition of HDI, the market for HDI securities, general economic conditions and other factors, the Offeror may acquire additional securities of HDI, or may sell some or all of the securities of HDI which it holds, in the open market, by private agreement or otherwise. The Offeror relied on the normal course purchase exemption set out in Section 4.1 of Multilateral Instrument 62-104 – “Take‑over Bids and Issuer Bids” with respect to its acquisition of Acquired Shares in excess of 20% of the issued and outstanding common shares of HDI.

Each statement in this press release of the percentage of the issued and outstanding common shares of HDI owned by the Offeror is based on the disclosure of the number of issued and outstanding common shares of HDI contained in the public disclosure documents filed by HDI on SEDAR.

This press release is being issued pursuant to National Instrument 62-103 – “The Early Warning System and Related Take-Over Bid and Insider Reporting Issues”, which requires an early warning report to be filed under HDI’s profile on SEDAR (www.sedar.com) containing additional information respecting the foregoing matters.

The Offeror’s head office is located at Suite 200, 2780 Granville Street, Vancouver, British Columbia, V6J 3J3. For inquiries or a copy of the early warning report required under Canadian securities legislation with respect to transactions referred to in this press release, a copy of which will be filed on www.sedar.com in accordance with applicable securities legislation, please contact:

Arbutus Distributors Ltd.
Contact person: Leonard Ruppenthal
Suite 200, 2780 Granville Street
Vancouver, BC  V6J 3J3
Telephone:  604-682-2911
Facsimile:  604-682-2729
 

SCHEDULE

Acquisition of the Acquired Shares
Date Method Number of Common Shares Price Per Common Share Total Value (Canadian Dollars)
January 5, 2016 Payment of Directors Fees 2,138 $ 17.98 $ 38,441.24
June 15, 2016 Purchase on TSX 200,000 $ 14.5000 $ 2,900,000.00
January 4, 2017 Payment of Directors Fees 3,178 $ 17.88 $ 56,822.64
January 24, 2018 Payment of Directors Fees 5,523 $ 20.20 $ 111,564.60
November 13, 2018 Purchase on TSX 110,000 $ 12.0753 $ 1,328,283.00
November 13, 2018 Purchase on TSX 10,000 $ 12.1161 $ 121,161.00
November 13, 2018 Purchase on TSX 10,000 $ 12.2000 $ 122,000.00
November 13, 2018 Purchase on TSX 10,000 $ 12.1433 $ 121,433.00
November 13, 2018 Purchase on TSX 10,000 $ 12.1485 $ 121,485.00
November 13, 2018 Purchase on TSX 10,000 $ 12.1479 $ 121,479.00
November 14, 2018 Purchase on TSX 20,000 $ 12.1164 $ 242,328.00
November 16, 2018 Purchase on TSX 40,000 $ 12.3033 $ 492,132.00
Total   430,839   $   5,777,129.48