BURNABY, BC, Feb. 3, 2012 /CNW/ - GLENTEL Inc. ("GLENTEL") has filed, and has received Toronto Stock Exchange ("TSX") acceptance of, a notice to renew its normal course issuer bid ("NCIB") to purchase up to 500,000 of its outstanding Common Shares. Depending upon future price movements and other factors from time to time, the board of directors of GLENTEL believes that the purchase of its outstanding Common Shares may represent desirable use of a portion of its available funds and may provide additional liquidity to its shareholders, benefiting the remaining shareholders by an increase in the value of their equity interest in the company.
On January 30, 2012, GLENTEL completed a previous NCIB through which it repurchased 35,100 Common Shares at a weighted average price of $15.64 in the last twelve months. In the period beginning February 7, 2012 and ending on January 31, 2013, GLENTEL intends to further acquire up to 500,000 Common Shares, being 2.25% of the 22,216,105 Common Shares outstanding on January 31, 2012. Subject to any block purchases made in accordance with the rules of the TSX, GLENTEL will be subject to a daily repurchase maximum of 3,106 Common Shares, representing 25% of the average daily trading volume of 12,425 Common Shares.
Any shares purchased pursuant to the NCIB will be cancelled. Shares will be purchased at the market price of the shares at the time of purchase and will be purchased on behalf of GLENTEL by a registered investment dealer through the facilities of the TSX or other Canadian market places. The funding for any purchase of Common Shares pursuant to the NCIB will be financed out of working capital of GLENTEL.
GLENTEL (TSX: GLN) is a leading wireless retailer and a provider of innovative and reliable telecommunications services and solutions in Canada and the United States. Founded in 1963 and headquartered in Burnaby, BC, GLENTEL comprises three operating divisions - Retail Canada, Retail U.S. and Business - that service thousands of consumers and commercial communications customers. The company operates more than 310 stores across Canada located primarily in retail malls and Costco Wholesale, as well as more than 190 stores in the United States. To its business and government customers, GLENTEL offers wireless service, rental equipment, satellite and terrestrial network systems, tower sites, and wireless asset monitoring. As the largest multi-carrier mobile phone retailer in Canada, it offers a choice of network carrier and wireless device or phone to Canadian consumers. GLENTEL operates its business under the trading names Glentel Wireless, WIRELESSWAVE, WAVE SANS FIL, Tbooth wireless, la cabine T sans fil, WIRELESS etc., SANS FIL etc., and Mac Station, as well as Diamond Wireless - Verizon Premium Retailer in the U.S.
Statements in this release relating to matters that are not historical fact are forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to, general economic conditions, changes in technology, reliance on third-party manufacturing, managing rapid growth, limited intellectual property protection, and other risks and uncertainties described in Glentel's public filings with securities regulatory authorities.
NO STOCK EXCHANGE, SECURITIES COMMISSION, OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.
For further information:
Investor Relations Contact:
Jas Boparai, Chief Financial Officer