TSX Approval of Normal Course Issuer Bid Toronto, Ontario--(Newsfile Corp. - October 26, 2021) - Evertz Technologies Limited (TSX: ET) ("Evertz") announces that it has sought and received acceptance from the Toronto Stock Exchange ("TSX") to make a Normal Course Issuer Bid to purchase up to 3,814,218 of its outstanding common shares from time to time in accordance with the normal course issuer bid procedures of the TSX and applicable Canadian securities laws (the "NCIB").
Pursuant to the NCIB, Evertz may purchase for cancellation up to 3,814,218 of its outstanding common shares during the 12-month period commencing on October 29, 2021 and ending on October 28, 2022. The total aggregate number of common shares which Evertz may purchase pursuant to NCIB represents approximately 5% of the 76,284,366 issued and outstanding common shares of Evertz as at October 25, 2021.
The price which Evertz will pay for any common shares purchased under the 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 systems 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 4,097 common shares per day, which represents approximately 25% of the Evertz's average daily trading volume for the period beginning on April 1, 2021 and ending on September 30, 2021.
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. Pursuant to a previous notice of intention to conduct a NCIB, under which Evertz sought and received approval from the TSX to purchase up to 3,819,437 of its common shares during the period of October 26, 2020 to October 25, 2021, Evertz has purchased, as of October 25, 2021, 41,380 common shares on the open market at a volume weighted average purchase price of $11.78 per share.
To the knowledge of Evertz, no director, senior officer or other insider of Evertz currently intends to sell any common shares under the NCIB. However, sales by such persons through the facilities of the TSX or other eligible designated exchanges and alternative trading systems 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 NCIB.