TORONTO, ONTARIO--(Marketwired - Aug 26, 2013) -
Attention Business/Financial Editors:
Evertz Technologies Limited ("Evertz") (ET.TO) announces that it has received acceptance from the Toronto Stock Exchange ("TSX") of its Notice of Intention to make a Normal Course Issuer Bid pursuant to the normal course issuer bid procedures of the TSX and applicable Canadian securities laws (the "2013 NCIB"). Evertz previously purchased for cancellation 201,440 common shares pursuant to a normal course issuer bid that expired in accordance with its terms on July 16, 2013 at prices averaging $13.18 per share.
Pursuant to the 2013 NCIB, Evertz may purchase for cancellation during the 12-month period commencing on September 3, 2013 and ending on September 2, 2014 up to 3,700,397 or approximately 5% of its 74,009,946 common shares outstanding as at the close of business on August 23, 2013.
The price which Evertz will pay for any common shares purchased under the 2013 NCIB will be the market price at the time of such purchase. All purchases of common shares by Evertz will be made through the facilities of TSX and other eligible designated exchanges or alternative trading platforms in Canada. All purchased shares will be cancelled.
Other than as otherwise permitted pursuant to once-a-week block purchases in accordance with TSX rules, Evertz may purchase up to 5,022 common shares per day, which represents approximately 25% of Evertz's average daily trading volume for the period beginning on February 1, 2013 and ending on July 31, 2013, excluding purchases made by the Corporation under its previous normal course issuer bid during such period.
Evertz believes that its common shares currently trade in a price range that does not adequately reflect their underlying value based on Evertz's 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.
To the knowledge of Evertz, no director, senior officer or other insider of Evertz currently intends to sell any common shares under the 2013 NCIB. However, sales by such persons through the facilities of the TSX or other eligible designated exchanges and alternative trading platforms in Canada 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.
Evertz expects to enter into pre-defined automatic securities purchase plans with its appointed purchasing broker from time to time during the course of the 2013 NCIB.
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 purchasing its common shares under the 2013 NCIB and entering into automatic repurchase plans with its purchasing broker) 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, assumptions as to the price of Evertz's common shares. 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, a significant appreciation in the price of Evertz's common shares.
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 (ET.TO) designs, manufactures and markets video and audio infrastructure equipment for the production, post production, broadcast and internet protocol television ("IPTV") industry. Evertz's solutions are purchased by content creators, broadcasters, specialty channels and television service providers to support their increasingly complex multi-channel digital and high definition television (HDTV) broadcast environments and by telecommunications companies to roll-out IPTV. Evertz's products allow its customers to generate additional revenue while reducing costs through the more efficient signal routing, distribution, monitoring and management of content as well as the automation of previously manual processes.