STE-MARIE DE BEAUCE, QC, Oct. 7 /CNW Telbec/ - (Note: all amounts are in Canadian dollars) GBO INC. ("GBO" or the "Company"; TSX Venture Exchange: GBO) announced today that its Board of Directors has authorized the Company to proceed with a substantial issuer bid (the "Offer"), pursuant to which the Company will offer to purchase for cancellation up to 15,000,000 of its issued and outstanding common shares at a price of Cdn$0.20 per share for an aggregate purchase price of up to Cdn$3 million. The funds required to pay for common shares purchased pursuant to the Offer, and the payment of the fees and expenses of the Offer, will be funded by the Company out of cash on hand.
Details of the Offer
As of October 6, 2009, there were 32,676,569 common shares issued and outstanding. Assuming that the Offer is accepted in full, the Offer will result in the purchase by the Company of 15,000,000 common shares, representing approximately 46% of the total number of issued and outstanding common shares. If more than 15,000,000 common shares are deposited under the terms of the Offer, and an aggregate of 15,000,000 common shares are taken up pursuant to the Offer, the Company will purchase the common shares on a pro rata basis according to the number of common shares deposited by each shareholder. The Offer is not conditional on any minimum number of common shares being deposited, however, the Offer is subject to other customary conditions. Full details of the Offer, including the procedure for depositing common shares, and the accompanying issuer bid circular and other related documents (collectively, the "Offer Documents") are expected to be mailed to shareholders shortly. The Offer Documents will contain important information which should be read carefully before making a decision in respect of the Offer.
Neither the Company nor any of its directors or officers makes any recommendation to any shareholder as to whether to deposit or refrain from depositing their common shares pursuant to the Offer. Each shareholder must make his, her or its own decision whether to deposit common shares and, if so, what number of common shares to deposit. Shareholders are urged to consult their own investment and tax advisors prior to making any decision in respect of the Offer.
The Offer, once launched, will be open for a minimum bid period of not less than 35 days.
This press release is for informational purposes only and does not constitute an offer to purchase or the solicitation of an offer to sell Shares. The solicitation and the offer to purchase Shares will be made only pursuant to the offer to purchase and issuer bid circular and related documents.
Founded in 1946, GBO Inc. is an important Canadian window and door manufacturer. The Company designs, develops, manufactures, markets and distributes a selection of high-end, energy-efficient wood window arrangements, doors and accessories sold primarily under the "Bonneville" and "Polar" brands. Recently, GBO launched a line of innovative fenestration products resistant to hurricanes and other impacts. The Company sells its windows and doors to the home improvement and construction markets in Quebec, Ontario, the Maritimes and the Eastern United States. GBO mainly serves independent building material distributors, distributors specializing in windows, doors and millwork, certain retailers, as well as construction and renovation contractors.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
SOURCE GBO INC.
For further information: For further information: Christopher Wood, Chairman of the Board of Directors and Chief Executive Officer, (418) 387-7723; Source: GBO Inc.