WATERLOO, ON, Nov. 3, 2016 /CNW/ - Sandvine Corporation (TSX: SVC) ("Sandvine") today announced that its Board of Directors has approved a normal course issuer bid for the purchase of up to 12,481,533 common shares ("Shares"), representing approximately 10% of the public float (as defined in the policies of the Toronto Stock Exchange (the "TSX")) of 124,815,332 Shares outstanding as at October 31, 2016, for cancellation over a one-year period (the "Bid"). Subject to obtaining the approval of the TSX, the Bid will commence on November 7, 2016 and will terminate on November 6, 2017, being the one year anniversary of the commencement date.
In connection with the Bid, Sandvine has entered into an automatic share repurchase plan with Canaccord Genuity Corp. dated November 3, 2016 pursuant to which Canaccord Genuity Corp. will purchase Shares under the Bid for cancellation.
The average daily trading volume of Sandvine's Shares over the most recently completed six calendar months was 506,432 Shares. Accordingly, Sandvine is entitled to purchase, on any trading day, up to 126,608 Shares and to make block purchases of Shares which exceed such daily limit no more frequently than once per calendar week.
Sandvine is making the Bid as it believes that the trading price of its Shares on the TSX does not accurately reflect the value of Sandvine and its Shares. There are no persons acting jointly or in concert with Sandvine in respect of the Bid.
During Sandvine's previous normal course issuer bid (the "Previous Bid") which expired on October 12, 2016, Sandvine acquired an aggregate of 13,667,800 Shares at an average price of $3.06 per share.
The actual number of Shares purchased, the timing of purchases and the price at which the Shares are bought will depend upon future market conditions, and upon potential alternative uses for Sandvine's cash resources. All acquisitions of Shares pursuant to the Bid will be made through the facilities of the TSX or alternative trading systems, if eligible, any purchases will be made by Sandvine at the prevailing market price of the Shares at the time of purchase. As at October 31, 2016, Sandvine had 135,662,488 Shares issued and outstanding.
Sandvine's network policy control solutions add intelligence to fixed, mobile and converged communications service provider networks, to increase revenue, reduce network costs and improve subscriber quality of experience. Our networking solutions perform end-to-end policy control functions, including traffic classification, policy decision and enforcement. Deployed as virtualized network functions or on Sandvine's purpose built hardware, the products provide actionable business insight, and the ability to deploy new consumer and business subscriber services, optimize and secure network traffic, and engage with subscribers.
Sandvine's network policy control solutions are deployed in more than 300 networks in over 100 countries, serving hundreds of millions of data subscribers worldwide. www.sandvine.com.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This press release contains certain forward-looking information and forward-looking statements within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements"). Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "potential", "intend", "may", "will", "should", or similar words suggesting future outcomes.
These forward-looking statements are based on numerous assumptions including but not limited to: (i) the market price of the Shares; (ii) the availability of Shares for purchase on the TSX; and (iii) available funds for the repurchase of Shares. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect.
Forward-looking statements are based upon the opinions and expectations of management of Sandvine as at the effective date of such statements and, in some cases, information supplied by third parties. Although Sandvine's management believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and that information received from third parties is reliable, it can give no assurance that those expectations will prove to have been correct. Forward-looking statements are subject to certain risks and uncertainties that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. These factors include changes in market and competition, governmental or regulatory developments and general economic conditions.
The forward-looking statements contained in this document are made as at the date of this news release and Sandvine does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.