TORONTO, May 10 /CNW/ - MIDDLEFIELD BANCORP LIMITED ("MBN") announced today its intention to make a normal course issuer bid for its common shares through the facilities of the Toronto Stock Exchange (the "TSX"). This normal course issuer bid is intended to commence on May 12, 2010 and will terminate on May 11, 2011. The price that MBN will pay for any securities purchased will be the prevailing market price of such securities on the TSX at the time of such purchase.
At April 30, 2010 there were 8,906,948 common shares issued and outstanding. MBN may, during the 12 month period commencing May 12, 2010, purchase on the TSX up to 445,347 common shares, being 5% of the common shares outstanding. MBN may not however purchase more than 1,000 common shares on any given day, other than block purchases in accordance with the rules of the TSX. MBN will cancel all common shares purchased pursuant to the bid. MBN has purchased and subsequently cancelled 84,100 common shares since May 12, 2009 at an average price of $1.36 per common share under its previously approved normal course issuer bid.
MBN believes that the current and recent market price of its common shares does not reflect its underlying value. As a result, depending on future movements and other factors, MBN believes that its common shares may represent an attractive investment for MBN and a desirable use of its available funds. Any normal course purchases made by MBN will also afford an increased degree of liquidity to those shareholders of MBN who wish to dispose of their common shares.
MBN is a Canadian merchant bank managed by Middlefield Group. The Company's principal objective is to create long term shareholder value through a twofold strategy of strategic investing in businesses with strong management and exceptional prospects for longer term earnings growth and special situation investing where there is excellent potential for significant capital appreciation. Our aim is to produce a steady stream of growing earnings from strategic investments supplemented by earnings from special situation activities.
MBN trades on the Toronto Stock Exchange under the symbol "MBN".
SOURCE MIDDLEFIELD BANCORP LIMITED
For further information: For further information: visit our website at www.middlefield.com or contact: Garth Jestley, President, (416) 847-5346