CAMBRIDGE, ON, Jan. 15 /CNW/ - COM DEV International Ltd. (TSX - "CDV") (the "Corporation") announced today acceptance by 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.
Pursuant to the Notice, the Corporation proposes to repurchase up to an aggregate of 7,165,031 common shares during the 12 month period (the "Bid Period") commencing January 19, 2010 and ending January 18, 2011. The Corporation shall make available a maximum of $18,000,000 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 January 14, 2010, there were 76,100,289 common shares of the Corporation outstanding with a public float (which excludes common shares held by insiders or otherwise excluded by the rules of the TSX) of 71,650,315 common shares. The 7,165,031 common shares the Corporation intends to repurchase under the TSX normal course issuer bid represent 10% of the Corporation's public float, 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 137,203 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 December 31, 2009.
The board of directors of the Corporation believes that the Corporation's 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 board of directors of the Corporation believes that the repurchases of the common shares of the Corporation are in the best interest of the Corporation and represent a desirable use of corporate funds.
About COM DEV
COM DEV International Ltd. (www.comdevintl.com) is a leading global designer and manufacturer of space hardware subsystems. With facilities in Canada, the United Kingdom and the United States, COM DEV manufactures advanced products and subsystems that are sold to major satellite prime contractors for use in communications, space science, remote sensing and military satellites.
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.
The triangular logo and the word COM DEV are each registered trademarks and the property of COM DEV Ltd. All rights reserved.
SOURCE COM DEV International Ltd.
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