Sandvine receives approval for stock buyback program and announces establishment of automatic repurchase planCanada Newswire
WATERLOO, ON, Jan. 30, 2013 /CNW/ - Sandvine Corporation (TSX:SVC; AIM:SAND) ("Sandvine") today announced that it has received acceptance from the Toronto Stock Exchange (the "TSX") of Sandvine's notice of intention to make a Normal Course Issuer Bid ("NCIB"). Under the NCIB, during the one year period commencing February 1, 2013 and ending January 31, 2014, Sandvine can purchase for cancellation up to 12,573,945 of its common shares ("Shares"), representing approximately ten percent of its public float as of January 25, 2013. The purchase program will be administered through the facilities of the TSX, or alternative trading systems, if eligible, and will conform to their regulations.
The actual number of Shares purchased, the timing of purchases and the price at which the Shares are bought will depend upon future market conditions, and upon potential alternative uses for Sandvine's cash resources. Any purchases will be made by Sandvine at the prevailing market price of the Shares at the time of purchase and will be subject to a maximum daily purchase volume of 46,286 Shares except as otherwise permitted under the TSX NCIB rules. All Shares purchased under the NCIB will immediately be cancelled. As at January 25, 2013, Sandvine had 138,591,421 Shares issued and outstanding. As of January 28, 2013, during the previous 12 months, Sandvine purchased a total of 50,000 Shares through a normal course issuer bid expiring on January 31, 2013 at a volume weighted average price of $1.8836.
Sandvine believes that, from time to time, the market price of the Shares may be below what it regards as the fair market value of such Shares and that the ongoing purchase of outstanding Shares may represent an effective use of Sandvine's available capital.
Sandvine also announced that it has entered into an automatic share purchase plan with a broker in order to facilitate repurchases of its Shares under its normal course issuer bid. Under Sandvine's automatic share purchase plan, Sandvine's broker may repurchase Shares under the normal course issuer bid at any time including without limitation when Sandvine would ordinarily not be permitted to due to regulatory restrictions or self-imposed blackout periods. Purchases will be made by Sandvine's broker based upon the parameters prescribed by the TSX and the terms of the parties' written agreement. Sandvine expects that it will put in place automatic purchase plans for periods of one quarter at a time during the course of the NCIB. The automatic share purchase plan has been reviewed by the TSX.
ABOUT SANDVINESandvine's network policy control solutions add intelligence to fixed, mobile and converged communications service provider networks to enable services that can increase revenue and reduce network costs. Powered by Sandvine's Policy Engine and SandScript policy language, Sandvine's networking equipment provides end-to-end policy control functions including traffic classification, and policy decision and enforcement across the data, control and business planes. Sandvine's products provide actionable business insight, the ability to deploy new subscriber services and tools to optimize traffic while enhancing subscriber Internet quality of experience.
Sandvine's network policy control solutions are deployed in more than 200 networks in over 85 countries, serving hundreds of millions of data subscribers worldwide, www.sandvine.com.
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