The Board of Directors of TECSYS Inc. authorizes the Corporation from time to time to make a normal course issuer bid for Common Shares of the Corporation through the Toronto Stock Exchange. The price which TECSYS Inc. will pay for the Common Shares acquired by it will be the prevailing market price of such Common Shares at the time of the acquisition. The Common Shares will be purchased by TECSYS for cancellation.
TECSYS is undertaking this action as it fundamentally believes that its common shares have been trading at prices which do not adequately reflect their value in relation to its restructured business and future prospects.
TECSYS' Normal Course Issuer Bid program started in 2003.
|Fiscal Year||Number of Shares Purchased||Average Price Per Share||Investment||Number of Shares Outstanding|
On July 16, 2008 the Toronto Stock Exchange (the "TSX") has accepted TECSYS' notice of intention to renew its "normal course issuer bid" to purchase some of its outstanding common shares through the facilities of such exchange. Up to 650,184 common shares, being approximately 5% of the 13,003,684 common shares outstanding as of July 4, 2008 may be bought under the bid. The common shares will be purchased by TECSYS for cancellation.
The number of shares that TECSYS intends to purchase and the time of such purchases will be determined by TECSYS, at its discretion. The purchase period will begin July 21, 2008 and will end on the earlier of July 20, 2009 or the date on which TECSYS will have either acquired the maximum number of common shares or otherwise decided not to make any further purchases.
The Board of Directors of TECSYS has concluded that the purchase of up to 650,184 common shares is a desirable use of funds for TECSYS and, therefore, would be in the best interests of TECSYS and its shareholders. The purpose of the purchases of common shares is to increase the proportionate share interest in TECSYS of those shareholders who retain their shares. Within the past twelve months, TECSYS purchased 680,400 common shares at an average price of $1.48 per common share under a normal course issuer bid which will expire on July 18, 2008.
The average daily trading volume of TECSYS over the last six complete calendar months was 10,841 common shares (the "ADTV"). Under TSX rules, TECSYS may purchase up to 25% of the ADTV (or 2,710 common shares) per trading day. Once a week, in excess of the daily repurchase limit, TECSYS may purchase a block of common shares not owned by an insider (i) having a purchase price of $200,000 or more, (ii) of at least 5,000 common shares with a purchase price of at least $50,000, or (iii) of at least 20 board lots of common shares which total 150% or more of the ADTV.
To the knowledge of TECSYS, after reasonable inquiry, no director, senior officer or any of their associates, or any person acting jointly or in concert with TECSYS, or any person holding 10% or more of the voting shares currently intends to sell common shares under the issuer bid.