TORONTO, May 14, 2014 /CNW/ - DATA Group Ltd. (the "Corporation") announced today that the Toronto Stock Exchange (the "TSX") has accepted a notice filed by the Corporation of its intention to make a normal course issuer bid (the "NCIB") with respect to its outstanding 6.00% convertible unsecured subordinated debentures (the "Debentures") (TSX:DGI.DB.A).
The daily average trading volume of the Debentures for the six calendar months preceding May 1, 2014 represents $76,113 aggregate principal amount of Debentures. Daily purchases will be limited to $19,028 principal amount of Debentures, other than block purchase exemptions. The Debentures are quoted based on $100 principal amounts with all trades being made in multiples of $1,000.
The notice provides that the Corporation may, during the 12 month period commencing May 15, 2014 and ending no later than May 14, 2015, purchase, through the facilities of the TSX, up to $4,475,640 aggregate principal amount of Debentures in total, being approximately 10% of the "public float" of such Debentures as at May 1, 2014.
During the period of the NCIB, purchases will be made on the open market by the Corporation through facilities of the TSX in accordance with the rules and policies of the TSX. The actual number of Debentures which may be purchased pursuant to the NCIB and the timing of any such purchases will be determined by senior management of the Corporation. The Corporation has appointed TD Securities Inc. as its broker to conduct the NCIB transactions.
The price that the Corporation will pay for any such Debentures will be the market price of such Debentures on the TSX at the time of acquisition. Debentures purchased under the bid will be cancelled. There have been no previous purchases of Debentures by the Corporation.
As at May 1, 2014, $45.0 million aggregate principal amount of Debentures were outstanding.
The Corporation believes that the market price of Debentures from time to time would be an appropriate use of corporate funds in light of potential benefits to remaining shareholders.
In addition to purchases under the NCIB, the Corporation may from time to time make other purchases of its convertible debentures in accordance with applicable securities laws and rules of the TSX.
About DATA Group Ltd.
DATA Group Ltd. is a managed business communications services company specializing in customized document management and marketing solutions. DATA Group develops, manufactures, markets and supports integrated web and print based communications, information management and direct marketing products and services that help its customers reduce costs, increase revenues, maintain brand consistency and simplify their business processes. DATA Group's expertise and resources enable it to address any document requirement of its customers, from a simple mail-out to an enterprise-wide document management or direct marketing initiative. We have approximately 1,670 employees working from 35 locations across Canada and the United States to accomplish this.
Additional information relating to DATA Group Ltd. is available on www.datagroup.ca and in the disclosure documents filed by DATA Group Ltd. on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.
Certain statements and other information included in this press release constitute "forward-looking information" within the meaning of applicable Canadian securities legislation ("forward-looking statements"). All statements in this press release, other than those relating to historical information or current conditions, are forward-looking statements. Such forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond our control, as well as various assumptions and business sensitivities, including those risk factors referred to under the heading "Risk Factors" in DATA Group's management's discussion and analysis for the year ended December 31, 2013, which may cause actual results, performance or achievements of DATA Group to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. DATA Group disclaims any intention or obligation to update or revise any forward-looking statements in this press release as a result of new information or future events, except as may be required under applicable Canadian securities legislation. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected future developments as well as other factors we believe are appropriate in the circumstances. All of the forward-looking statements contained herein are qualified by these cautionary statements and by the assumptions that are stated or inherent in such forward-looking statements. Although we believe these assumptions are reasonable, undue reliance should not be placed on these assumptions and such forward-looking statements.
SOURCE: DATA Group Ltd.
For further information:
Mr. Michael Suksi
President and CEO
Data Group Ltd.
Tel: (905) 791-3151
Mr. Paul O'Shea
Chief Financial Officer
Data Group Ltd.
Tel: (905) 791-3151