Mr. Christopher Nutt reports
AUTOMODULAR ANNOUNCES NORMAL COURSE ISSUER BID RENEWAL
The Toronto Stock Exchange has accepted Automodular Corp.'s notice of intention to renew its normal course issuer bid. Under the terms of the normal course issuer bid, Automodular may acquire up to 1,552,790 common shares, representing 10 per cent of the public float of Automodular's common shares issued and outstanding as of Aug. 12, 2013, as defined by the policies of the TSX. In the opinion of the board of directors of Automodular, its common shares have over the last couple of months traded in a price range that does not reflect the underlying value of the corporation. Accordingly, depending upon future price movements and other factors, Automodular believes that its outstanding common shares represent an attractive investment and a desirable use of a portion of its corporate funds. Automodular's strong cash position allows for the implementation of the bid without adversely affecting other growth opportunities.
As of Aug. 12, 2013, the corporation had 19,800,304 common shares outstanding. The average daily trading volume of Automodular's shares over the last six completed calendar months is 134,809. Accordingly, under TSX rules and policies, Automodular is entitled on any trading day to purchase up to 33,702 common shares. Once a week, in excess of the daily 33,702 common share repurchase limit, Automodular may also purchase a block of shares not owned by an insider (i) having a purchase price of $200,000 or more, (ii) of at least 5,000 common shares having a purchase price of at least $50,000, or (iii) of at least 20 board lots of common shares which total 150 per cent of the average daily trading volume in accordance with TSX rules.
On Aug. 7, 2013, Automodular completed its previous normal course issuer bid through which it purchased 593,375 common shares for cancellation at a volume weighted average price of $1.72 per share during the last 12-month period.
The normal course issuer bid will begin on Aug. 19, 2013. The normal course issuer bid will terminate on Aug. 18, 2014, or on such earlier date as Automodular may complete its purchases pursuant to the notice of intention to make a normal course issuer bid filed with the TSX. All shares purchased by the corporation will be on the open market through the facilities of the TSX in accordance with the rules, regulations and policies of the TSX, and will be cancelled. The prices that Automodular will pay for any of the common shares purchased will be the market price of the shares at the time of acquisition, determined in accordance with the rules of the TSX.
To the knowledge of Automodular, no director, senior officer or other insider of Automodular currently intends to sell any common shares under this bid. However, sales by such persons through the facilities of the TSX may occur if the personal circumstances of any such person change or any such person makes a decision unrelated to these normal course purchases. The benefits to any such person whose shares are purchased would be the same as the benefits available to all other holders whose shares are purchased. There are no agreements in place to sell securities under the normal course issuer bid.
© 2016 Canjex Publishing Ltd. All rights reserved.