/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
TSX Symbol: COA
VANCOUVER, June 18 /CNW/ - Coastal Contacts Inc. (TSX: COA) announced
today that its Board of Directors has authorized management to proceed with an
offer to purchase for cancellation up to 5 million of its common shares
("Common Shares") at a price per share of $1.00 (the "Offer"). If the Offer is
fully taken up it will represent approximately 8% of Coastal's issued and
outstanding common shares. If more than 5,000,000 common shares are tendered
to the Offer, Coastal will purchase the common shares on a pro rata basis
according to the number of common shares deposited by each depositing
shareholder, with fractions rounded down to the nearest whole share.
"The issuer bid reflects Coastal's continued commitment to enhancing
shareholder value and provides an attractive use of capital given Coastal's
business and current market valuation," stated Roger Hardy, Coastal's
President and Chief Executive Officer. "We are pleased with our strong cash
balance allowing us to return value to our shareholders while retaining
sufficient working capital to pursue the Company's growth initiatives."
The Company intends to fund the Offer from its existing cash, cash
equivalents and short-term investments balance of approximately $17.5 million
as of April 30, 2008.
An offer to purchase and issuer bid circular containing full details of
the Offer and procedures for tendering common shares is expected to be mailed
to shareholders on or about June 19, 2008. The Offer will expire at 5:00 pm
(Toronto time) on or about July 25, 2008, unless extended by the Company. The
Offer is not conditional upon any minimum number of shares being tendered, but
is subject to certain other conditions which are specified in the offer to
purchase and issuer bid circular.
Neither the Company nor its Board of Directors makes any recommendation
to shareholders as to whether to tender or refrain from tendering their common
shares into the Offer. Shareholders are strongly encouraged to review the
offer to purchase and issuer bid circular and related documents carefully and
consult with their financial and tax advisors prior to making any decision
with respect to the Offer.
Since October 2006, Coastal has, pursuant to previously announced normal
course issuer bids, purchased for cancellation approximately 11.8 million
common shares at a weighted average price of $1.18 per share. Coastal will
cease purchasing common shares pursuant to its current normal course issuer
bid until after the expiration or termination of the Offer.
In February 2008, Coastal repurchased for cancellation approximately
6.8 million common shares under a modified "Dutch auction" issuer bid at a
price of $1.25 per common share.
About Coastal Contacts:
Coastal Contacts is the world's leading direct to consumer vision
products company which designs, produces and distributes a diversified
offering such as contact lenses and eyeglasses. The Company's unique
combination of branded and private label products represent quality, value and
above all, service. Coastal sells into more than 150 countries through
proprietary web properties which reflect the culture and consumer preference
of the target market. As new markets for eyeglasses and contact lenses evolve,
Coastal is positioned to become the vision product consumer's retailer of
choice owing to its unbeatable value proposition combining value and service.
Already No. 1 in many of its markets, Coastal is rapidly advancing toward its
goal of becoming the "World's Optical Store".
This news release is for informational purposes only and does not
constitute an offer to buy or the solicitation of an offer to buy or the
solicitation of an offer to sell common shares of Coastal.
This news release may contain forward-looking statements that reflect the
current views and/or expectations of Coastal Contacts Inc. with respect to its
performance, business and future events. Investors are cautioned that all
forward-looking statements involve risks and uncertainties including, without
limitation, those relating to changes in the market, potential downturns in
economic conditions, consumer credit risk, our ability to implement our
business strategies, limited suppliers, inventory risk, disruption in our
distribution facilities, foreign currency exchange rate fluctuations,
regulatory requirements, demand for contact lenses, competition and dependence
on the internet. These risks, as well as others described in detail in
Coastal's Annual Information Form and other filings with Canadian securities
regulatory authorities, could cause actual results and events to vary
significantly. Coastal Contacts does not undertake any obligations to release
publicly any revisions for updating any voluntary forward-looking statements.
Neither the TSX nor any other regulatory body has reviewed and
therefore does not accept responsibility for the adequacy or accuracy
of this release.
For further information:
For further information: Terry Vanderkruyk, Vice President, Corporate
Development, Coastal Contacts Inc., (604) 676-4498,