BURNABY, BC, Oct. 20, 2016 /CNW/ - Photon Control Inc. ("Photon Control" or the "Company") (TSX-V: PHO), a leading developer of optical measurement technologies, today announced the Company has decided on a strategy of seeking to invest a minimum of 20% of the Company's annual free cash flow into its Normal Course Issuer Bid ("NCIB"). The Company will proceed with this plan at times when trading black-outs are not in effect. For greater clarity, the Company defines Free Cash Flow as operating cash flow after purchases of equipment and intangibles.
The Company was authorized on December 24, 2015 to undertake the NCIB in compliance with the requirements of the TSX-V allowing it to repurchase, for cancellation, up to 5,000,000 common shares. The NCIB period covers January 4, 2016 to January 3, 2017. The Company has purchased to date 319,500 common shares with 4,680,500 common shares remaining available for repurchase under the NCIB.
Management of the Company is of the opinion that its common shares have been trading at prices significantly below the underlying value of the Company and that conducting the NCIB gives the Company flexibility to purchase its common shares at attractive prices if it determines it to be in the best interests of the Company to do so.
The Company intends to continue with its policy of seeking to invest a minimum of 20% of the Company's annual free cash flow to repurchasing common shares under future NCIBs up to the maximum annual number permitted under TSX-V rules and will renew the current NCIB when it expires. There can be no assurance as to the number of shares, if any, that may be repurchased under the plan or the aggregate dollar amount expended. The Company may discontinue purchases at any time, subject to compliance with applicable regulatory requirements.
"We are pleased that Photon's strong balance sheet and cash flow enable us to return value to shareholders through our share repurchase. We continue to invest in strengthening our internal capability with a view to driving long-term growth," said Michael Goldstein, Chairman and Acting Chief Executive Officer. "The Board of Directors and management team believe that the Company's shares are an attractive investment opportunity and repurchasing stock is an important part of our capital allocation strategy."
About Photon Control Inc.
Photon Control Inc. designs, manufactures and distributes a wide range of optical sensors & instruments to measure temperature, pressure, position, and flow. These products are used by original equipment manufacturers (OEM) as well as end-users in the Semiconductor, Oil and Gas, Power, Life Science, and Manufacturing industries. Photon Control's products provide high accuracy and reliability in extreme conditions and are supported by a team of experts that offer onsite installation, training, and support. Photon Control Inc. also provides engineering services for customized optical measurement systems. Headquartered in an ISO 9001:2008 manufacturing facility in Burnaby, BC, Photon Control Inc. is listed on the TSX Venture Exchange, trading under the symbol ''PHO". Additional information about the company can be found at www.photon-control.com/investorrelations.html
Forward-Looking Statements: This news release contains forward looking statements, including statements relating to the Company's intentions to purchase common shares under the normal course issuer bid, as well as statements regarding the business and anticipated financial performance of the Company, which involve risks and uncertainties. Although the Company believes that the proposed purchase of common shares under the normal course issuer bid is based upon reasonable assumptions and expectations, these risks and uncertainties may cause the Company's actual results to differ materially from those contemplated or implied by the forward-looking statements. Factors that might cause or contribute to such differences include, among others, general economic conditions, the performance of the common shares of the Company or stock markets generally, competitive pressures, competing technologies and the market acceptance of the Company's photonic-based products as a replacement to existing technologies and products. Readers are encouraged to consider the other risks and uncertainties discussed in and additional information contained in the Company's financial statements and filings filed on SEDAR at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Photon Control Inc.
For further information: For Investor Relations Inquiries Please Contact: Michael Goldstein, Chairman and Acting CEO, [email protected], 604.422.8861 Ext 102