NELSON, BC, Feb. 2, 2012 /CNW/ - Pacific Insight Electronics Corp. (the "Company") wishes to announce that it is proceeding with a Normal Course Issuer Bid ("NCIB") to repurchase up to 300,000 previously issued common shares, and has filed the applicable notice with the Toronto Stock Exchange (the "Exchange") in accordance with Exchange policies. The Company's current issued and outstanding share capital is 5,937,417 common shares (the "Issued Shares") of which 4,473,666 common shares are determined to be held by the public and not subject to pooling, escrow or resale restrictions (the "Public Float"). The Company is permitted to repurchase in a 12 month period, through open market purchases, up to a maximum of the greater of 5% of its Issued Shares, being 296,870 common shares, and 10% of its Public Float, being 447,366 common shares. The 300,000 common shares that the Company may repurchase pursuant to the NCIB represents approximately 6.706% of the Public Float and 5.053% of its Issued Shares. The Company could have, if it elected to do so, based upon market and investment considerations, acquired up to 447,366 common shares, representing 10% of the Company's Public Float as at the date hereof, on the open market through the facilities of the Exchange. Daily purchases by the Company under the NCIB will not exceed 1,000 common shares, being the greater of 25% of the average daily trading volume of the Company's listed shares on the Exchange for the past six months, or 1,000 shares, subject to block purchase exceptions. In accordance with Exchange policies, the duration of the NCIB will be no more than one year, commencing February 7, 2012 and ending February 6, 2013. Purchases made pursuant to the NCIB will be made by Raymond James Ltd. on behalf of the Company. Any purchases will be effected through the facilities of the Exchange and other Canadian marketplaces.
The Company is proposing to purchase its own common shares for its own corporate purposes and reasons, including the ability to acquire its common shares at prices that are favorable. The repurchase by the Company of any of its common shares should not be deemed or construed as a recommendation to purchase any of its common shares or an indication of the present or future value of the Company's common shares. Any common shares purchased by the Company pursuant to the NCIB will be cancelled.
The Company purchased a total of 4,800 of its common shares under its preceding NCIB which commenced on January 13, 2011 and expired on January 12, 2012, at an average purchase price per share of $1.80.
Pacific Insight Electronics Corp. ("Pacific Insight") designs, manufactures and delivers electronic products and full service solutions to the heavy truck, automotive and specialty markets. Pacific Insight designs and distributes its products and services to original equipment manufacturers and distributors in the United States and Canada.
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