Absolute® Software Corporation announced today that it is proceeding with a normal course issuer bid for up to 3,067,322 common shares of the Company, representing approximately 10% of the public float of the Company. On December 16, 2011, the Company had 43,361,866 common shares outstanding. The Company has received approval from the TSX to commence this bid on December 23, 2011. Purchases will be made on the TSX at the market price at the time of acquisition.
The Company’s previous normal course issuer bid expired on November 18, 2011, and under such bid the Company purchased and cancelled 2,435,120 of its common shares at a weighted average price of $3.77 per common share. The Company has purchased an aggregate of 8,063,720 shares at an average cost of $3.60 over three years pursuant to its normal course issuer bids. The Company’s new normal course issuer bid will terminate on December 22, 2012 or earlier if the number of shares sought in the Bid have been obtained. The Company reserves the right to terminate the bid earlier if it feels it is appropriate to do so.
The Company is commencing this normal course issuer bid because it believes that, from time to time, the market prices of its Common Shares may not fully reflect the underlying value of the Company’s business and its future business prospects. The Company believes that at such times the purchase of Common Shares would be in the best interests of the Company. Such purchases are expected to benefit all remaining shareholders by increasing their equity interest in the Company.
All shares will be purchased on the open market through the facilities of the TSX, and payment for the shares will be in accordance with TSX policies. The price paid for the shares will be the market price at the time of purchase. Purchasing may be suspended at any time. No purchases will be made other than by means of open market transactions during the term of the normal course issuer bid. The maximum number of shares that may be purchased on a daily basis is 7,647 shares representing 25% of the average daily trading volume for the last six calendar months, except where purchases are made in accordance with “block purchases” exemptions under applicable TSX policies. The shares purchased by the Company will be cancelled.
The Company has engaged Versant Partners Inc. to act as broker and to administer the Bid under an automatic share purchase plan on a blinded basis. In the event the automatic share purchase plan is cancelled or suspended during the term of the Bid and any director, senior officer or other insider of the Company intends to sell any common shares during such period, the Company will suspend purchases under the Bid until such person’s sales are completed. 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. To the knowledge of the Company, no director, senior officer or other insider of the Company currently intends to sell any common shares under the Bid.