Management's Discussion and Analysis (cont’d) In 2010, we amended the terms and conditions of our non- voting equity shares to provide for a right of retraction for a  limited period of time. Under this temporary retraction right,  each holder of High Liner’s non-voting equity shares could  elect to have High Liner repurchase that holder’s non-voting  equity shares for a retraction price of $8.00 per share between  April 7, 2010 and April 30, 2010. As well, we amended the  conditions attached to our common shares to permit each  common share to be converted into a non-voting equity  share at any time at the option of the holder after the expiry  of the non-voting equity share temporary retraction right. As  a result, 3,185,030 non-voting equity shares were retracted  under the temporary retraction right for $25.5 million in  connection with the temporary retraction right. This was  financed by the utilization of cash on hand and draws on our  working capital lines. The retraction of our non-voting equity shares resulted in  an increase of $8.9 million in contributed surplus on our  balance sheet in fiscal 2010. As the cost of the retraction was  less than the assigned value of the shares, the difference  represents a contribution by the original shareholders that  accrues to the benefit of the remaining shareholders. Since a  company cannot earn a profit from the acquisition of its own  shares, the difference is not included in retained earnings,  but credited to contributed surplus. The amount credited  to contributed surplus was equal to the difference between  the redemption cost and the assigned value of all shares,  regardless of whether they were retracted. In 2010, we granted a waiver under our shareholder rights  plan in respect of a reorganization of our largest shareholder.  To facilitate the waiver, the Company redeemed its  shareholder rights under the plan adopted in December 2007  and adopted a new shareholder rights plan on substantially  the same terms as the 2007 shareholder rights plan. Under  the replacement shareholder rights plan, one right was  issued in respect of each common share and non-voting  share of High Liner outstanding to holders of record on  July 23, 2010. The rights that were issued under the 2007  shareholder rights plan were redeemed at a price of $0.00001  per right. The cost of the redemption was not material to the  Company. Although the new shareholder rights plan was  effective immediately, its adoption was subject to ratification  by the shareholders, which was obtained on January 5, 2011  at a special shareholders' meeting.  The quarterly dividend for the first quarter of 2010 was $0.075  per common and non-voting equity share. The dividend for  the second, third and fourth quarters of 2010 was increased  to $0.085 per common and non-voting equity share. In the  first quarter of 2011, we increased the quarterly dividend  again to $0.09 per common and non-voting equity share,  followed by a further increase to $0.10 per common and non- voting equity share for the remaining quarters in 2011. The  dividend policy reflects our confidence in our growth strategy,  together with significant improvements on our balance sheet  since divesting our fishing assets.  On February 22, 2012, the Directors approved a quarterly  dividend of $0.10 per share on the Company’s common  and non-voting equity shares payable on March 15, 2012 to  holders of record on March 5, 2012.  These dividends are “eligible dividends” for Canadian tax  purposes. Our capital management practices are described at length in  Note 23 to our annual financial statements.  On March 15, 2012 13,337,906 common shares, 1,788,062  non-voting equity shares and 852,317 stock options were  outstanding. The stock options are exercisable on a one-for- one basis for common shares of the Company.  Our organic growth plans can be achieved without significant  operational expansion.  Our existing operational resources include: Our seven manufacturing facilities have ample production  capacity to meet forecasted demands. Our ability to source  new products is not limited to our own production. We  purchase significant quantities of frozen fillets as finished  goods, and some of our value-added products are purchased  as finished goods. Our Lunenburg, Portsmouth and Newport News facilities  include large distribution centres. We lease a U.S. distribution centre in Peabody, Massachusetts, which we  operate ourselves. We also utilize third-party cold storage/ distribution centres to supplement our facilities when  needed. We have Directors of Logistics in each Company  location to ensure that the warehousing and transportation  of our products is handled in cost-effective and customer- service-oriented methods.  Our business is simplified through an enterprise-wide  business management system, using  Oracle  software.  We have also developed a proprietary internet-enabled  procurement system that allows us to manage procurement  online in real time. Business intelligence software allows  us to manage our information on a real-time basis to help  us make business decisions quickly, manage inventory and  accounts receivable and provide more informative financial  disclosure. We have ensured that we are equipped to respond  to customer demands for electronic transmission of business  documents, including invoices, purchase orders and payment  confirmations. In 2011, we have embarked on a renewal  of our Product Life Cycle systems through a purchase of  Oracle  software. We are currently implementing the Global  Specifications Management software through the company. ANNUAL REPORT 2011 27 TECHnOLOGy DIVIDEnDS DISTRIbuTIOn CEnTRES PLAnT CAPACITy  3.2 OPERATIONAL RESOURCES DISCLOSuRE OF OuTSTAnDInG SHARE DATA