Toronto, Ontario--(Newsfile Corp. - October 16, 2019) - Evertz Technologies Limited's (TSX: ET) ("Evertz") Board of Directors has authorized the implementation of a new normal course issuer bid (the "NCIB"). Pursuant to the NCIB, Evertz intends to purchase up to 3,830,262 of its common shares by way of normal course purchases on the Toronto Stock Exchange ("TSX") subject to the approval of the TSX or, as otherwise permitted, on other eligible designated exchanges or alternative systems in Canada (each, a "Designated Exchange"). As such, Evertz intends to file the required notice with the TSX to obtain such approval as soon as practicable. The common shares authorized to be purchased, represent 5% of the common shares outstanding on October 15, 2019.
Evertz believes that its common shares currently trade in a price range that does not adequately reflect their underlying value based on Evertz business and strong financial position. As a result, depending upon future price movements and other factors, Evertz believes that its outstanding common shares represent an attractive investment and a desirable use of a portion of its corporate funds.
The purchases on the TSX may commence on the date that is two trading days after the latest of (i) the date of acceptance by the TSX of Evertz's notice of intention in final executed form, and (ii) the date that Evertz issues the press release required by the TSX. It is expected that the purchases will terminate not more than one year after the purchases commence, or on such earlier date as Evertz may complete its purchases.
Purchases will be made by Evertz in accordance with applicable regulatory requirements and the price which Evertz will pay for any such common shares will be the market price of such shares at the time of acquisition. The common shares purchased will be cancelled.
To the knowledge of Evertz, no director, senior officer or other insider of Evertz currently intends to sell any common shares under this bid. However, sales by such persons through the facilities of the TSX or other Designated Exchange 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.
This press release contains certain "forward-looking information". All statements, other than statements of historical fact, that address activities, events or developments that Evertz believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to Evertz's intention to purchase its common shares under the normal course issuer bid) constitute forward-looking information. This forward-looking information reflects the current expectations or beliefs of Evertz based on information currently available to Evertz as well as certain assumptions including, without limitation, the anticipated approval by the TSX of Evertz's notice of intention to repurchase its common shares pursuant to the terms of proposed NCIB. Forward-looking information is subject to a number of significant risks and uncertainties and other factors that may cause the actual results of Evertz to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Evertz. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to, the failure of Evertz to obtain TSX approval of the NCIB in a timely manner.
Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Evertz disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although Evertz believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Evertz Technologies Limited (TSX: ET) designs, manufactures and markets video and audio infrastructure solutions for the television, telecommunications and new-media industries. The Company's solutions are purchased by content creators, broadcasters, specialty channels and television service providers to support their increasingly complex multi-channel digital, and high and ultra-high definition television ("HDTV" and "UHD") and next generation high bandwidth low latency IP network environments and by telecommunications and new-media companies. The Company's products allow its customers to generate additional revenue while reducing costs through efficient signal routing, distribution, monitoring and management of content as well as the automation and orchestration of more streamlined and agile workflow processes on premise and in the "Cloud".
Evertz Technologies Limited
Chief Financial Officer
(905) 335 7580
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/48839