Coastal Contacts Announces Intent to Purchase up to 7,000,000 of its Common Shares


    TSX Symbol: COA

    VANCOUVER, Jan. 16 /CNW/ - Coastal Contacts Inc. (TSX: COA) announced
today that its Board of Directors has authorized management to proceed with an
offer to purchase for cancellation up to 7,000,000 of its common shares, at a
price per share that is not less than $1.10 and not greater than $1.25,
through a modified "Dutch auction" issuer bid. If the offer is fully taken up
it will represent approximately 10% of Coastal's issued and outstanding
    The Dutch auction tender procedure allows shareholders to select a price,
within the specified range, at which each shareholder is willing to sell all
or a portion of the common shares he or she owns. Upon expiration of the
offer, Coastal will select the lowest purchase price that will allow it to buy
up to 7,000,000 shares (the "Purchase Price"). Shares tendered at or below the
Purchase Price will be purchased at the Purchase Price subject to pro-ration
to the extent that the aggregate number all of such common shares tendered
exceeds 7,000,000 shares.
    "The issuer bid reflects Coastal's continued commitment to enhancing
shareholder value and provides an attractive use of capital given Coastal's
business and current market valuation," stated Roger Hardy, Coastal's
President and Chief Executive Officer. "We are pleased with our strong cash
balance allowing us to return value to our shareholders while retaining
sufficient working capital to pursue the Company's growth initiatives."
    The Company intends to finance the purchase from its existing cash, cash
equivalents and short-term investments balance of approximately $27 million as
of October 31, 2007.
    An offer to purchase and issuer bid circular containing full details of
the offer and procedures for tendering common shares is expected to be mailed
to shareholders on or about January 17, 2008. The offer, which is subject to
regulatory approval, will expire at 5:00 pm (Toronto time) on or about
February 22, 2008, unless extended by the Company. The offer is not
conditional upon any minimum number of shares being tendered, but is subject
to certain other conditions which are specified in the offer to purchase and
issuer bid circular.
    Neither the Company nor its Board of Directors makes any recommendation
to shareholders as to whether to tender or refrain from tendering their shares
into the offer. Shareholders must decide how many shares they will tender, if
any, and the price within the stated range at which they will offer their
shares to the Company. Shareholders are strongly encouraged to review the
offer to purchase and issuer bid circular and related documents carefully and
consult with their financial and tax advisors prior to making any decision
with respect to the offer.
    Since October 2006, Coastal has, pursuant to its two previously announced
normal course issuer bids, purchased for cancellation approximately
4.1 million shares at an average price of $1.06 per share. Coastal will cease
purchasing common shares pursuant to its current normal course issuer bid
until at least 20 business days after the expiration or termination of the

    About Coastal Contacts:

    Coastal Contacts is one of the world's fastest-growing vision care
suppliers. Leveraging its world class operations in Europe, North America and
Asia, Coastal is building a predictable recurring revenue stream in the
contact lens segment and is developing complementary branded vision care
products. Already No. 1 in many of its markets, Coastal is rapidly advancing
toward its goal of becoming the dominant global vision care supplier.

    This news release is for informational purposes only and does not
constitute an offer to buy or the solicitation of an offer to buy or the
solicitation of an offer to sell common shares of Coastal.

    This news release may contain forward-looking statements that reflect the
current views and/or expectations of Coastal Contacts Inc. with respect to its
performance, business and future events. Investors are cautioned that all
forward-looking statements involve risks and uncertainties including, without
limitation, those relating to changes in the market, potential downturns in
economic conditions, consumer credit risk, our ability to implement our
business strategies, limited suppliers, inventory risk, disruption in our
distribution facilities, foreign exchange fluctuations, regulatory
requirements, demand for contact lenses, competition and dependence on the
internet. These risks, as well as others described in detail in Coastal's
Annual Information Form and other filings with Canadian securities regulatory
authorities, could cause actual results and events to vary significantly.
Coastal Contacts does not undertake any obligations to release publicly any
revisions for updating any voluntary forward-looking statements.

    Neither the TSX nor any other regulatory body has reviewed and therefore
    does not accept responsibility for the adequacy or accuracy of this

For further information:

For further information: Terry Vanderkruyk, Vice President, Corporate
Development, Coastal Contacts Inc., (604) 676-4498,

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