CAMBRIDGE, ON, March 20, 2014 /CNW/ - COM DEV International Ltd. (TSX - "CDV") (the "Corporation") announced today the acceptance by the Toronto Stock Exchange (the "TSX") of the Corporation's Notice of Intention to make a Normal Course Issuer Bid (the "Notice") through the facilities of the TSX and alternative trading systems.
Pursuant to the Notice, the Corporation proposes to repurchase up to an aggregate of 3,833,156 common shares during the 12 month period (the "Bid Period") commencing March 21, 2014 and ending March 20, 2015. The Corporation shall make available a maximum of $7,500,000 to fund the repurchase of common shares during the Bid Period. The Corporation will determine the number of common shares to be repurchased and the timing of such purchases subject to the normal course issuer bid policy of the TSX. All common shares repurchased by the Corporation during the Bid Period will be cancelled.
As of March 13, 2014, there were 76,663,135 common shares of the Corporation outstanding. The 3,833,156 common shares the Corporation intends to repurchase under the TSX normal course issuer bid represent 5% of the Corporation's issued and outstanding common shares, the maximum number of shares permitted to be purchased under the TSX's normal course issuer bid policy. Further, except for block purchase exceptions, pursuant to such policy the Corporation cannot acquire more than 43,351 shares on any given trading day, this number being 25% of the average daily trading volume of the Corporation's shares for the six calendar months ending on February 28, 2014.
The normal course issuer bid that is the subject of the Notice is a successor to the Corporation's normal course issuer bid that commenced on March 21, 2013 and will terminate on March 20, 2014 (the "Previous Bid"). To date, the Corporation has not purchased any common share under the terms of its Previous Bid.
The Corporation believes that its common shares have been trading in a price range which does not adequately reflect their value in relation to the Corporation's business and its future business prospects. As a result, depending upon future price movements and other factors, the Corporation believes that the repurchases of its common shares are in the best interest of the Corporation and represent a desirable use of corporate funds.
About COM DEV
COM DEV International Ltd. (www.comdev.ca) is a leading global provider of space hardware and services. The company has a staff of 1,200, annual revenues of $216 million, and facilities in Canada, the United Kingdom and the United States. COM DEV designs manufactures, and integrates advanced products, subsystems and microsatellites that are sold to major satellite prime contractors, government agencies and satellite operators, for use in communications, space science, remote sensing and defence applications. The company has won contracts to supply its equipment on over 900 spacecraft. COM DEV's majority-owned subsidiary, exactEarth Ltd., provides satellite data services for global maritime surveillance.
The triangular logo and the word COM DEV are each registered trademarks and the property of COM DEV Ltd. All rights reserved. This news release may contain certain forward-looking statements that involve risks and uncertainties. Actual results may differ materially from results indicated in any forward-looking statements. The Company cautions that, among other things, in view of the rapid changes in communications markets and technologies, and other risks including the cost and market acceptance of the Company's new products, the level of individual customer procurements and competitive product offerings and pricing, and general economic circumstances, the Company's business prospects may be materially different from forward-looking statements made by the Company.
SOURCE: Com Dev International Ltd.
For further information:
Chief Financial Officer
Tel: (519) 622-2300 ext. 2826
Tel: (416) 815-0700 ext. 290