TORONTO, June 2 /CNW/ - Neo Material Technologies Inc. ("Neo") (TSX:NEM) announced today that the Toronto Stock Exchange (the "Exchange") has accepted a notice filed by Neo of its intention to make a Normal Course Issuer Bid (the "Bid").
The notice provides that Neo may, during the 12 month period commencing June 4, 2010 and ending June 3, 2011, purchase on the Exchange up to 9,550,244 common shares in total, being approximately 10% of the public float (common shares not held by insiders or related parties). The price which Neo will pay for any such shares will be the market price at the time of acquisition. The actual number of common shares which may be purchased pursuant to the Bid and the timing of any such purchases will be determined by management of Neo. As at May 31, 2010, there were approximately 120,292,073 common shares outstanding. The average daily trading volume ("ADTV") of common shares for the most recently completed six calendar months is 424,839. Pursuant to the terms of the Bid, on any given trading day, Neo may purchase a maximum of 25% of the ADTV of common shares, being 106,210 common shares. All common shares purchased pursuant to the Bid will be purchased for cancellation, and all such purchases will be made on the open market through the facilities of the Exchange.
Neo did not make any normal course issuer bid purchases during the twelve months preceding the date of the notice filed with the Exchange.
Neo believes that its common shares have been trading in a price range which does not adequately reflect the value of such shares in relation to the business of Neo and its future business prospects. As a result, depending upon future price movements and other factors, Neo believes that its outstanding common shares may represent an attractive investment to Neo. Furthermore, the purchases are expected to benefit all persons who continue to hold common shares by increasing their equity interest in Neo.
Forward Looking Statements
From time to time, the Company may publish forward-looking statements relating to such matters as expected financial performance, business prospects, technological developments, and development activities and like matters. These statements involve risk and uncertainties, including but not limited to the risk factors previously described. Actual results could differ materially from those projected as a result of these risks and should not be relied upon as a prediction of future events. Neo Material Technologies Inc. undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events.
About Neo Material Technologies
Neo Material Technologies is a producer, processor and developer of neodymium-iron-boron magnetic powders, rare earths and zirconium based engineered materials and applications, and other rare metals and their compounds through its Magnequench and Performance Materials business divisions. These innovative products are essential in many of today's high technology products. Magnequench's Neo powders are used to produce bonded magnets, generally used in micro motors, precision motors, sensors and other applications requiring high levels of magnetic strength, flexibility, small size and reduced weight. Rare earth and zirconium applications include catalytic converters, computers, television display panels, optical lenses, mobile phones and electronic chips. The Company's rare metals products are primarily used in the wireless, LED, flat panel, solar and catalyst industries. Neo is headquartered in Toronto, Canada.
SOURCE Neo Material Technologies Inc.
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