DRUMMONDVILLE, QC, Nov. 28, 2013 /CNW Telbec/ - CVTech Group Inc. ("CVTech" or the "Corporation") (Toronto Stock Exchange: CVT) announces its intention to make a normal course issuer bid (the "bid").
Having obtained the approval of the Toronto Stock Exchange, CVTech may now repurchase, for cancellation purposes, up to 2,500,000 common shares over a 12-month period beginning December 2, 2013 and ending December 1, 2014, which represents, as at November 27, 2013, approximately 3.49% of the Corporation's issued and outstanding common shares calculated on a non diluted basis.
The purchases will be done only through the intermediary of the Toronto Stock Exchange and at the market price at the time of purchase. As at November 27, 2013, there were 71,548,541 common shares issued and outstanding. Within the past 12 months, CVTech has purchased 886,840 of its common shares under another bid at a weighted average price paid per security of $1.16.
Between May 1, 2013 and October 31, 2013, the average daily trading volume for the common shares of CVTech was 62,703 common shares. Therefore, under the rules and policies of the Toronto Stock Exchange, CVTech has the right to repurchase, for any one trading day, a maximum of 15,675 common shares, which represents 25% of the average daily trading volume.
Also, CVTech may purchase, once per calendar week and in addition to the daily limit of 15,675 common shares, one block of shares (as defined by the TSX Company Manual) not directly or indirectly owned by insiders of the Corporation, in accordance with the rules and policies of the Toronto Stock Exchange.
The Board of Directors of the Corporation considers that it is in the best interest of the shareholders to use a portion of Corporation's liquidities, where available, to repurchase the Corporation's common shares considering that the price of these common shares on the Toronto Stock Exchange may, from time to time, be undervalued.
All repurchases of common shares made by the Corporation will be made solely within the framework of the bid and in conformity with the rules and policies of the Toronto Stock Exchange. However, there may be directors, insiders or senior officers selling common shares of the Corporation during the term of the bid. To that effect, the Corporation has taken measures to assure that it does not repurchase the common shares of its directors, insiders or senior officers.
OVERVIEW OF THE CORPORATION
CVTech is a company operating in the energy sector. The Corporation is a leading provider of construction and maintenance services to the public utility and heavy industrial markets mainly in Quebec, Ontario and the eastern United States Through its subsidiaries, the Corporation provides maintenance and construction services for electricity transmission and distribution networks, substations and electrical power houses, as well as the control of vegetation on rights-of-way for electrical lines.
This document may contain forward-looking statements that reflect management's current expectations regarding future events. Forward-looking statements are based on a number of factors and include risks and uncertainties. Actual results may differ from forecast results. Management assumes no obligation beyond what is required under the law to update or revise forward-looking statements pursuant to new information or future events.
SOURCE: CVTECH GROUP INC.
For further information:
André Laramée, MBA
President and Chief Executive Officer
Mario Trahan, CPA, CMA
Chief Financial Officer
Martin Goulet, CFA