BMO Nesbitt Burns Reduces Stake in High Liner Foods

BMO Nesbitt Burns Inc., a prominent Canadian investment dealer, has announced a significant reduction in its holdings of High Liner Foods Incorporated (TSX: HLF). On October 10, 2024, BMO Nesbitt Burns disposed of 800,000 common shares, representing approximately 2.67% of the issued and outstanding shares, through the facilities of the Toronto Stock Exchange at a price of $13.60 per share. This transaction resulted in aggregate gross proceeds of $10,880,000 for BMO Nesbitt Burns.


Prior to this disposition, BMO Nesbitt Burns beneficially owned or exercised control or direction over 3,200,000 common shares, representing approximately 10.69% of the issued and outstanding shares as of August 7, 2024. Following the disposition, BMO Nesbitt Burns' ownership in High Liner Foods fell to approximately 8.02%, allowing the investment dealer to fall below the 10% reporting threshold and no longer be subject to early warning reporting requirements.

The reduction in BMO Nesbitt Burns' stake in High Liner Foods can be attributed to derivative arrangements entered into by the investment dealer and an affiliate. These arrangements may have influenced BMO Nesbitt Burns' decision to dispose of its shares, as the firm may have sought to hedge its economic exposure to securities of the Company or take advantage of favorable market conditions and business opportunities.


The Rubicon Resources, LLC settlement, which involved the cancellation of 2,429,014 common shares, also played a role in BMO Nesbitt Burns' investment strategy. The settlement share cancellation affected the overall number of issued and outstanding shares, impacting the percentage of ownership held by BMO Nesbitt Burns. As a result, the investment dealer may have decided to adjust its holdings to maintain its desired level of exposure to High Liner Foods.

As BMO Nesbitt Burns falls below the 10% reporting threshold, its influence on High Liner Foods' strategic decisions may decrease. However, the investment dealer's reduced ownership could also lead to increased volatility in High Liner Foods' stock price, as market participants may reassess their positions in the company. Additionally, the disposition may impact the competitive landscape in the frozen seafood industry, as other institutional investors may reevaluate their investments in High Liner Foods and its competitors.

In conclusion, BMO Nesbitt Burns' reduction in its stake in High Liner Foods reflects the investment dealer's response to derivative arrangements, market conditions, and the Rubicon Resources, LLC settlement. The disposition may have implications for High Liner Foods' stock price, volatility, and the competitive landscape in the frozen seafood industry. As BMO Nesbitt Burns falls below the 10% reporting threshold, its influence on High Liner Foods' strategic decisions may decrease, but the investment dealer's reduced ownership could also lead to increased market volatility.