TORONTO, Aug. 9, 2012 /CNW/ - Softchoice Corporation (TSX: SO) ("Softchoice"), a leading North American provider of IT solutions and services, today announced that it has filed with The Toronto Stock Exchange (the "TSX") a notice to renew, for a 12-month period, its Normal Course Issuer Bid (NCIB). The NCIB will enable Softchoice to purchase its common shares in the market.
Under the terms of the proposed NCIB, Softchoice may purchase up to 1,585,403 of its issued and outstanding common shares, representing 10 percent of the Company's public float as of July 31, 2012. As of July 31, 2012, there were a total of 19,813,500 common shares of Softchoice issued and outstanding. In accordance with TSX rules, any daily repurchases will be limited to a maximum of 6,191 common shares, which represents 25% of the average daily trading volume of the common shares on the TSX for the six months ended July 31, 2012.
Softchoice believes that its common shares are undervalued at current market prices based on its current earnings and future prospects and that the repurchase of common shares at current market prices is an appropriate use of corporate funds.
Purchases of common shares will be made through the facilities of the TSX from time to time at the market price prevailing at the time of the acquisition. Purchases may commence on August 13, 2012 and will terminate on August 12, 2013. Any common shares acquired under the NCIB will be cancelled.
None of the directors or senior officers of Softchoice and, to the best of the knowledge of the Company after reasonable enquiry, no associate of a director or senior officer, no person acting jointly or in concert with Softchoice and no person holding 10 percent or more of the common shares intends to sell common shares on the TSX during the course of the normal course issuer bid. It is possible, however, that sales by such persons may occur as personal circumstances or factors unrelated to the NCIB determine. The benefits to any such person whose common shares are purchased would be the same as the benefits available to any other holder whose common shares are purchased.
During the period from August 12, 2011 to August 11, 2012 inclusively, Softchoice purchased 50,300 of its outstanding common shares, at a weighted average price of $11.67.
As a leading North American provider of technology solutions and services, Softchoice combines the efficiency and reliability of a national IT supplier with the personal touch and technical expertise of a local solutions provider. Softchoice's holistic approach to technology includes solution design, implementation and asset management services, as well as access to one of the most comprehensive and cost-effective technology distribution networks in North America. With over 1,200 employees, Softchoice manages the technology needs of thousands of corporate and public sector organizations across the United States and Canada.
Softchoice stock is listed on the TSX under the trading symbol "SO." The common shares of Softchoice are not registered under the U.S. Securities Act of 1933 and are not publicly traded in the United States.
This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to expectations, intentions and plans contained in this press release that are not historical fact. When used in this press release, the words "anticipate", "expect", "will" and similar expressions generally identify forward-looking statements. These statements reflect our current expectations and are subject to a number of risks and uncertainties including, but not limited to, change in technology and general market conditions, many of which are set out or incorporated by reference in the Company's latest Annual Information Form. Due to the many risks and uncertainties, Softchoice cannot assure that the forward-looking statements contained in this press release will be realized.
SOURCE: Softchoice Corporation
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