Good News..Share buyback announcedZongshen PEM Power Systems Inc. Announces Automatic Share Purchase Plan12/31/2008 2:11 PM - Canada NewsWire
VANCOUVER, Dec. 31, 2008 (Canada NewsWire via COMTEX News Network) --
TSX:ZPP
Zongshen PEM Power Systems Inc. (TSX: ZPP) today announced that it has entered into an automatic share purchase plan with a broker in order to facilitate repurchases of its common shares under its normal course issuer bid (the "Bid"). The company previously announced that it had received approval from the Toronto Stock Exchange ("TSX") to purchase up to 3,065,211 common shares pursuant to the Bid, representing approximately 5% of the company's 61,304,230 issued and outstanding common shares as of November 3, 2008. The Bid commenced on November 17, 2008 and will terminate on the earlier of (i) November 16, 2009, (ii) the date on which the company acquires all of the shares sought pursuant to the Bid or (iii) the date the company provides notice of the termination of the Bid.
The automatic share purchase plan enables the company's broker to repurchase shares under the Bid during periods when the company would ordinarily not be permitted to due to self-imposed blackout periods. Purchases will be made by the company's broker at its discretion based upon the parameters prescribed by the TSX and applicable Canadian securities laws and the terms of the automatic share purchase plan. The automatic share purchase plan has been approved by the TSX and is expected to be effective from January 2, 2009.
The Board of Directors of ZPP believes that the Bid is in the best interests of ZPP and that the Bid constitutes a desirable use of ZPP's funds. At September 30, 2008, the Company had cash and short-term deposits, including the short-term deposit with Zongshen Industrial Group, totalling $41.2 million, compared to $37.1 million at December 31, 2007 and no long-term debt. The Company has approximately $10 million committed to capital projects, comprising the construction of ZPP's Chongqing production facility and battery exchange club trial project. The Company is well capitalized to fund the expansion of its electric motorcycle and small gas motorcycle business and take advantage of strategic investment opportunities, which may include acquisitions, joint ventures and the development of new products.
About Zongshen PEM Power Systems Inc.
Zongshen PEM Power Systems Inc. is a public company trading under the symbol ZPP on the Toronto Stock Exchange. The Company is engaged in the commercialization of alternative power systems including batteries, fuel cells and solar power, for a variety of consumer and industrial applications. The Company manufactures low-cost, high quality, environmentally friendly small gas motorbikes, electric motorcycles, electric bicycles and other e-vehicles in China for the Chinese domestic and international markets. Zongshen PEM Power System's largest shareholder is Zongshen Industrial Group, one of China's largest manufacturers and distributors of motorcycles, engines, and power equipment.
About Zongshen Industrial Group
Zongshen Industrial Group was founded in 1992, and now consists of 30 totally or majority owned subsidiaries including Chongqing Zongshen Power Machinery Co., which is listed on the Shenzhen Stock Exchange. The Company employs in excess of 13,000 employees with assets in excess of RMB 8.4 billion yuan. Zongshen Industrial Group implements the development strategy of related diversification within thermodynamic machinery industry. Its engine products mainly include motorcycle engines, mini- car engines, speedboat engines, and general-purpose machinery. Its end products mainly include motorcycles, speedboats and other power equipment. Zongshen Industrial Group now has an annual production capacity of 2,000,000 motorcycles, 50,000 mini vans, 3,000,000 motorcycle engines, 5,000,000 general-purpose engines, and 100,000 car engines. Zongshen Industrial Group has established a leading brand for motorcycles in China attracting some of the world's largest motorcycle manufacturers as joint venture partners.
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