DRUMMONDVILLE, QC, May 28 /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 3,659,640 common shares over a twelve (12) month period beginning June 1, 2010 and ending May 31, 2011, which represents five per cent (5%) of CVTech'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 May 27, 2010, there are 73,192,806 common shares issued and outstanding. Within the past twelve (12) months, CVTech has purchased 23,000 of its common shares under another bid at a weighted average price paid per security of $1.51.
Between November 1, 2009 and April 30, 2010, the average daily trading volume for the common shares of CVTech was twenty-five thousand eight hundred and forty-two (25,842) 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 six thousand four hundred and sixty (6,460) common shares, which represents twenty-five per cent (25%) of the average daily trading volume.
Also, CVTech may purchase, once per calendar week and in addition to the daily limit of six thousand four hundred and sixty (6,460) common shares, one block of shares (as defined by the Toronto Stock Exchange 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 CVTech considers that it is in the best interest of its shareholders to use a portion of its positive cash flow to repurchase the Corporation's common shares considering that the price 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. To the knowledge of the Corporation, no director, insider or senior officer intends to sell to CVTech common shares during the term of the bid.
CVTech is a management company operating in two major sectors. Through Thirau ltée and its subsidiary Thirau LLC, the Corporation provides services to the electric power industry for the construction and maintenance of transmission and distribution lines primarily in Quebec and the eastern United States. Thirau ltée's subsidiary J.J.L. Déboisement inc. specializes in control of vegetation surrounding power lines and in clearing rights of way. Thirau LLC's wholly owned subsidiary Riggs Distler & Company, Inc. is a leading provider of maintenance and construction services to the utility and heavy industrial markets. In the CVT systems and related products segment, the Corporation, through CVTech-IBC Inc., designs, manufactures and sells continuously variable power transmission systems, or CVTs. CVTech-AAB specializes in rebuilding crankshafts and cylinders and in distributing engine parts. CVTech currently has approximately 1,445 employees, consisting of 1,300 in the Energy segment and 145 in the CVT systems and related products segment.
The present document may contain forward-looking statements that reflect the current expectations of management with regard to future events. These forward-looking statements depend on a certain number of factors and are subject to risks and uncertainties. The actual results could differ from those anticipated. Management undertakes no obligation to update or revise the said forward-looking statements on receipt of new information or subsequent to future events other than the ones required by law.
For further information with regard to CVTech, the reader is invited to consult the SEDAR database and the Corporation's Website at: www.cvtech.ca.
SOURCE NAPEC Inc.
For further information: For further information: André Laramée, MBA, President and Chief Executive Officer, (819) 479-7771, firstname.lastname@example.org; Mario Trahan, CMA, Chief Financial Officer, (819) 479-7771, email@example.com; MaisonBrison: Martin Goulet, CFA, (514) 731-0000, firstname.lastname@example.org; Source: CVTech Group inc.