Calian announces intention to make a normal course issuer bid
Calian Announces Its Intention to Make a Normal Course Issuer Bid
Calian Technologies Ltd. has announced its intention to make a normal course issuer bid through the facilities of the Toronto Stock Exchange (TSX). Repurchases will not exceed 729,597 common shares, representing 10% of Calian's public float of common shares, as of November 20, 2013. The number of common shares of Calian outstanding as of November 20, 2013 was 7,393,533 and the number of shares in Calian's public float as of November 20, 2013 was 7,295,965. The issuer bid will commence on November 23, 2013 and will not extend beyond November 22, 2014.
All purchases of common shares under the normal course issuer bid will be made on the open market through the facilities of the TSX at market prices in accordance with TSX rules. The common shares so purchased will be cancelled. Other than block purchase exceptions, daily purchases will be limited to 25% of the average daily trading volume (which based on our calculations is currently 4,500 common shares).
The Company also established an automatic plan under which its broker, Desjardins Securities Inc., may purchase common shares of Calian pursuant to the normal course issuer bid (NCIB). The plan defines a prearranged set of critieria in accordance with which its broker may make share purchases. The plan will enable the purchase of Calian's common shares at any time, including when Calian would not ordinarily be active in the market because of internal trading blackout periods, insider trading rules or otherwise. The plan will terminate on the earliest of: the date on which the purchase limits specified in the plan have been attained, the date on which the normal course issuer bid terminates or the date on which the plan is terminated by a party in accordance with its terms.
Calian believes the purchase of its common shares constitute an appropriate use of its general funds in order to increase shareholder value. The current strong cash position of Calian allows Calian to implement the repurchase plan without adversely impacting Calian's operations. In the past 12 months, Calian repurchased 273,370 common shares through a normal course issuer bid at an average price of $19.77.