TORONTO, June 20, 2017 /CNW/ - Pivot Technology Solutions,
Inc. (TSX: PTG), ("Pivot" or the "Company") a full-service
information technology provider, today announced that it has
received regulatory approval for a normal course issuer bid
("NCIB").
Under the new bid, the Company may purchase for cancellation up
to 3,820,852 common shares of the Company or approximately 10% of
the Company's total public float at prevailing market prices, in
accordance with the rules of the Toronto Stock Exchange ("TSX").
There are currently 40,293,020 common shares outstanding as of
June 2, 2017. The Company
intends to cancel all shares purchased under the NCIB, being up to
3,820,852 common shares of the Company, or approximately 10% of the
total public float as of June 2,
2017. The renewed NCIB will commence on June 22, 2017 and continue until June 21, 2018, unless completed or terminated
earlier and will be effected through the facilities of the TSX.
The NCIB follows the Company's normal course issuer bid for the
12 months ended March 31, 2017 (the
"2016 NCIB"). The Company had obtained approval to purchase up to
2,097,333 common shares under the 2016 NCIB. The Company's 2016
NCIB began on April 1, 2016 and
concluded on March 31, 2017, with the
Company repurchasing through the facilities of the TSX Venture
Exchange and, commencing December 19,
2016, the TSX, and cancelling 1,160,574 common shares at a
weighted average purchase price of Cdn $1.6877 per common share. In addition, in
the last 12 months, 920,313 common shares were purchased for
$1.50 per common share from former
directors and officers pursuant to the issuer bid exemption in
National Instrument 62-104 and such common shares were subsequently
cancelled.
"We believe our share buyback program is in the best interests
of Pivot shareholders and our Company," said Kevin Shank, President and Chief Executive
Officer. "In our view, repurchasing shares from time to time is an
appropriate use of the Company's capital."
The Company has entered into an automatic share purchase plan
dated May 12, 2017 ("ASPP") with
Echelon Wealth Partners, Inc. ("Echelon") in order to facilitate
repurchases of its common shares under the NCIB. Under the ASPP,
Echelon may repurchase shares under the NCIB at any time including,
without limitation, when the Company would ordinarily not be
permitted due to regulatory restrictions or blackout periods.
Purchases will be made based upon the parameters prescribed by the
TSX and applicable securities laws and the terms of the ASPP.
Purchases will be made at the discretion of the Company at
prevailing market prices, through the facilities of the TSX, in
compliance with regulatory requirements. Daily purchases will be
restricted to not more than 22,390 common shares, representing 25%
of 89,560, the average daily trading volume of the common shares
calculated from December 19, 2016 to
May 31, 2017, subject to certain
prescribed exemptions. There can be no assurance as to the precise
number of shares that will be repurchased under the share
repurchase program. The Company may discontinue its purchases at
any time, subject to compliance with applicable regulatory
requirements.
About Pivot Technology Solutions
Pivot is a leading
information technology infrastructure and services provider to
approximately 2,000 customers, including many members of the
Fortune 500. With offices throughout North America, Pivot uses its knowledge and
local presence to help corporations, governments and educational
institutions design, build, implement and maintain advanced
computing and communication infrastructure. For more information,
visit www.pivotts.com.
Forward Looking Statements
This news release
contains statements that, to the extent they are not recitations of
historical fact, may constitute "forward-looking statements" within
the meaning of applicable Canadian securities laws. Forward-looking
statements include, but are not limited to, statements with respect
to the proposed NCIB by the Company and management's expectations
regarding the Company's plans to repurchase for cancellation common
shares under the renewed NCIB. Pivot uses words such as "may",
"would", "could", "will", "likely", "expect", "believe", "intend",
"anticipate" and similar expressions to identify forward-looking
statements. Any such forward-looking statements are based on
assumptions and analyses made by Pivot in light of its experience
and its perception of historical trends, current conditions and
expected future developments, as well as other factors Pivot
believes are appropriate under the relevant circumstances. However,
whether actual results and developments will conform to Pivot's
expectations and predictions is subject to any number of risks,
assumptions and uncertainties. Many factors could cause
Pivot's actual results to differ materially from those expressed or
implied by the forward-looking statements contained in this news
release. These factors include, without limitation: regulatory
compliance, market and economic conditions, availability of
sellers, changes in laws and regulations, operating efficiencies
and cost saving initiatives. The "forward-looking statements"
contained herein speak only as of the date of this news release
and, unless required by applicable law, the Company undertakes no
obligation to publicly update or revise such information, whether
as a result of new information, future events or otherwise.
SOURCE Pivot Technology Solutions, Inc