WATERLOO, ON, Jan. 14, 2016 /CNW/ - RDM Corporation (TSX:RC), a leader in remote deposit capture (RDC) solutions, today reported that its Notice of Intention to make a Normal Course Issuer Bid (the "Bid") has been accepted by the Toronto Stock Exchange (the "TSX").
Pursuant to the Bid, RDM may purchase up to 1,127,498 common shares, representing approximately 5 per cent of the issued and outstanding common shares as of January 7, 2016. The Company may purchase the shares commencing on January 18, 2016 until January 17, 2017 or on such earlier date RDM completes its permitted purchases pursuant to the Notice or provides notice of termination of the Bid. Any purchases will be made through the facilities of the TSX at prevailing market prices in accordance with regulatory requirements. RDM did not purchase any shares under its previous Bid that expired on December 30, 2015.
For purposes of the TSX Bid rules, RDM's average daily trading volume ("ADTV") for the past six months was 30,615 Common Shares. As a result, RDM will be subject to a daily repurchase restriction of 7,653 Common Shares under the Bid (being 25% of the ADTV), except where purchases are made in accordance with the "block purchase exception" of the TSX rules. RDM will cancel any common shares purchased pursuant to the Bid.
RDM's Board of Directors believes the Company's common shares are an attractive investment and that normal course purchases at recent market prices may represent an attractive investment and a desirable use of its available funds. As at January 7, 2016, the Company had 22,549,976 issued and outstanding common shares.
About RDM Corporation
RDM Corporation provides large financial institutions with Remote Deposit Capture (RDC) solutions designed to help their clients simplify the way they do business. RDM processes over $600 billion in payments annually and helps financial institutions increase revenue, expand market share and improve customer service for over 80,000 end users.
Four of the top ten financial institutions in the United States use RDM's payment processing solutions. RDM serves 31 percent of the top 100 Fortune 500 companies including brokerage firms, big-box retailers, healthcare and insurance providers, and government entities. Working with clients for over 25 years, RDM provides both software and hardware solutions including web-based and mobile RDC, and manufactures a wide range of digital imaging scanners. For more information, visit www.rdmcorp.com.
This news release contains forward-looking statements. Forward-looking statements are based on estimates and assumptions made by RDM in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that RDM believes are appropriate in the circumstances. Many factors could cause RDM's actual results, performance or achievements to differ materially from those expressed or implied by forward-looking statements. Risk factors relating to RDM are discussed in the Risks and Uncertainties section of RDM's Annual Information Form and year-end Management's Discussion and Analysis. These factors should be considered carefully, and readers should not place undue reliance on RDM's forward-looking statements. RDM has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE RDM Corporation
For further information: Contacts: Randy Fowlie, President & CEO, RDM Corporation, (519) 746-8483 x340, [email protected]; Rui Malhinha, Chief Financial Officer, RDM Corporation, (519) 746-8483 x284, [email protected]