VANCOUVER, May 8, 2015 /CNW/ - Avigilon Corporation ("Avigilon" or the "Company") (TSX:AVO), a leading global provider of end-to-end security solutions, announced today that the Toronto Stock Exchange ("TSX") has approved a normal course issuer bid (the "Bid"), to be effected through the facilities of the TSX and alternative trading systems.
Avigilon's Board of Directors believes the current price of Avigilon's common shares (the "Shares") does not properly reflect the underlying strength, operational track record, and growth potential of the business. Accordingly, the Board believes the purchase and cancellation of Shares under the Bid will be in the best interests of the Company and its remaining shareholders.
Pursuant to the Bid, the Company may purchase up to 3,789,740 Shares, representing approximately 10% of the public float. As of May 5, 2015, there were 46,638,069 issued and outstanding Shares, of which 37,897,409 Shares were in the public float. The Bid will commence on May 12, 2015 and will end no later than May 11, 2016. Shares purchased pursuant to the Bid will be returned to treasury and cancelled.
In accordance with TSX rules, daily purchases made by Avigilon under the Bid will not exceed 66,726 Shares, subject to certain prescribed exemptions, which is equal to 25% of Avigilon's average daily trading volume on the TSX for the six calendar months ended April 30, 2015 which was 266,905 Shares.
Avigilon has implemented an automatic share purchase plan (the "Plan") in respect of the Bid and has retained Canaccord Genuity Corp. (the "Broker") as its broker to conduct the Bid on its behalf. The Plan permits the Broker to purchase Shares under the Bid at any time, including during internal blackout periods and when Avigilon is in possession of undisclosed material information, subject to certain price limitations and other parameters prescribed by the TSX, applicable securities laws and the terms of the Plan. Avigilon may also instruct the Broker to make specific purchases of Shares, and may suspend or terminate the Plan, provided that in each instance, Avigilon is not in possession of any undisclosed material information respecting Avigilon or its securities. The Plan has been approved by TSX.
Avigilon Corporation is defining the future of protection through innovative end-to-end security solutions. Avigilon's industry-leading HD network video management software, megapixel cameras, access control and video analytics products are reinventing the security market. Information about Avigilon can be found at www.avigilon.com.
AVIGILON and other marks used herein are the registered or unregistered trademarks of Avigilon Corporation and its subsidiaries in Canada and other jurisdictions worldwide. Other product names mentioned herein may be the registered or unregistered trademarks of their respective owners.
Forward Looking Information
Certain statements contained in this news release, including all statements that are not historical facts, contain and constitute forward-looking information or forward-looking statements as defined under applicable securities laws (collectively, "forward-looking statements"). Forward-looking statements normally include words like 'believe', 'expect', 'anticipate', 'plan', 'intend', 'continue', 'estimate', 'may', 'will', 'should', 'ongoing' and similar expressions, and herein include, without limitation, statements (express or implied) respecting Avigilon's plans and expectations for the Bid. Forward-looking statements are not guarantees of future performance, actions, or developments and are based on management's expectations and assumptions regarding historical trends, current conditions and expected future developments, as well as other factors that management believes are appropriate in the circumstances. Management has based the forward-looking statements herein on estimates and assumptions that it believes are reasonable at the current time, including without limitation, assumptions that: Avigilon will be able to purchase and cancel Shares pursuant to the Bid; Avigilon will have adequate cash to conduct the Bid as currently contemplated; market conditions will be conducive to the Bid; the Share price will increase over time; the financial and other benefits of conducting the Bid outweigh other potential uses of Avigilon's resources; the Bid will be advantageous to Avigilon's shareholders; and the Broker will not exceed the permitted daily and aggregate purchase limits. Actual results, however, could be substantially different due to the risks and uncertainties associated with and inherent to Avigilon's business. Important risks that could cause such differences include, but are not limited to: Avigilon's inability to successfully execute its business strategies; inadequate working capital; Shares may not be available to purchase in the numbers, at the times, or at the prices currently contemplated, if at all; changes to Avigilon's business or financial situation; other business needs or opportunities may necessarily divert funds away from the Bid; fluctuations in the Share price; changes in the capital markets and general economic conditions; unavailability of necessary financing on acceptable terms, or at all; and the Broker's failure to comply with the permitted daily and aggregate purchase limits. More information about the risks and uncertainties affecting Avigilon's business is provided in the "Risk Factors" section of Avigilon's Annual Information Form dated March 3, 2015, which is available under Avigilon's profile on SEDAR at www.sedar.com. Although Avigilon has attempted to identify factors that may cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, predicted, estimated or intended; also, many of the factors may be beyond Avigilon's control. Accordingly, readers should not place undue reliance on forward-looking statements. Avigilon undertakes no obligation to reissue or update any forward-looking statements as a result of new information or events after the date hereof except as may be required by law. All forward-looking statements contained herein are qualified by this cautionary statement.
SOURCE Avigilon Corporation
For further information: Investor relations: Dennis Fong, Avigilon Corporation, T: (604) 629-5182, ext. 2515, [email protected]; Media relations: Brett White, Avigilon Corporation, T: (469) 484-5458, ext 3063, [email protected]