CAMBRIDGE, ON, March 13, 2015 /CNW/ - COM DEV International Ltd. (TSX:CDV) (the "Corporation") announced today its intention to renew its normal course issuer bid through the facilities of the Toronto Stock Exchange (the "TSX").
Subject to regulatory approval, on expiry of its preliminary normal course issuer bid, the Corporation proposes to repurchase common shares representing up to 5% of the issued and outstanding common shares of the Corporation during the 12 month period (the "Bid Period") commencing on or about March 21, 2015, and expiring on or about March 20, 2016. The Corporation intends to 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.
The Corporation intends to file its Notice of Intention to make a Normal Course Issuer Bid (the "Notice") with the TSX as soon as possible after making reasonable enquiry of the intention of:
(i) associates of directors and senior officers of the Corporation; (ii) persons acting jointly or in concert with the Corporation; and (iii) persons holding 10% or more of any class of equity securities of the Corporation, as to whether such persons intend to sell common shares of the Corporation during the Bid Period.
The Corporation currently has a normal course issuer bid in place (the "Current Bid"). The Current Bid commenced on March 21, 2014 and will terminate on March 20, 2015. To date, the Corporation has purchased 291,300 common shares under the terms of its Current Bid.
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.comdev.ca) is a leading global provider of space hardware and services. The company has a staff of 1,200, annual revenues of $208 million, and facilities in Canada, the United Kingdom, the United States, India and China. 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.
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.
For further information: Gary Calhoun, Chief Financial Officer, Tel: (519) 622-2300 ext. 2826, [email protected]; Jeff Codispodi, Director, Investor Relations & Communications, Tel: (519) 622-2300 ext. 2844, [email protected]