Press release from CNW Group
CVTech Group Inc. announces its intention to make a normal course issuer bid
Friday, November 16, 2012
DRUMMONDVILLE, QC, Nov. 16, 2012 /CNW Telbec/ - CVTech Group Inc. ("CVTech" or the "Corporation") (TSX: CVT) announces its intention to make a normal course issuer bid (the "bid").
Having obtained the approval of the Toronto Stock Exchange, CVTech may now repurchase, for cancellation purposes, up to 2,000,000 common shares over a 12-month period beginning November 20, 2012 and ending November 19, 2013, which represents, as at November 8, 2012, approximately 2.76% of CVTech's issued and outstanding common shares calculated on a non diluted basis.
The purchases will be done only through the intermediary of the Toronto Stock Exchange and at the market price at the time of purchase. As at November 8, 2012, there are 72,419,981 common shares issued and outstanding.
Between May 1, 2012 and October 31, 2012, the average daily trading volume for the common shares of CVTech was 25,383 common shares. Therefore, under the rules and policies of the Toronto Stock Exchange, CVTech has the right to repurchase, for any one trading day, a maximum of 6,345 common shares, which represents 25% of the average daily trading volume.
Also, CVTech may purchase, once per calendar week and in addition to the daily limit of 6,345 common shares, one block of shares (as defined by the Toronto Stock Exchange Manual) not directly or indirectly owned by insiders of the Corporation, in accordance with the rules and policies of the Toronto Stock Exchange.
During the past 12 months, CVTech has not repurchased any common share pursuant to a normal course issuer bid.
The Board of Directors of CVTech considers that it is in the best interest of its shareholders to use a portion of its liquidities to repurchase the Corporation's common shares considering that the price of its common shares on the Toronto Stock Exchange may, from time to time, be undervalued.
All repurchases of common shares made by the Corporation will be made solely within the framework of the bid and in conformity with the rules and policies of the Toronto Stock Exchange. However, there may be directors, insiders or senior officers selling common shares of the Corporation during the term of the bid. To that effect, the Corporation has taken measures to assure that it does not repurchase the common shares of its directors, insiders or senior officers.
OVERVIEW OF THE CORPORATION
CVTech is a company operating in the energy sector. Through Thirau ltée and its subsidiaries, Riggs Distler Inc. and Thirau LLC, the Corporation provides services to the electric power industry for the maintenance of transmission and distribution lines, primarily in Quebec, Ontario and the eastern United States. Another Thirau ltée subsidiary, J.J.L. Déboisement Inc., specializes in control of vegetation surrounding power lines and in clearing rights of way. Thirau LLC's wholly owned subsidiary Riggs Distler & Company, Inc. is a leading provider of maintenance and construction services to the utility and heavy industrial markets.
This document may contain forward-looking statements that reflect management's current expectations regarding future events. Forward-looking statements are based on a number of factors and include risks and uncertainties. Actual results may differ from forecast results. Management has no obligation beyond what is required under the law to update or revise forward-looking statements pursuant to new information or future events.
For further information with regard to CVTech, the reader is invited to consult the SEDAR database and the Corporation's Website at: www.cvtech.ca.
SOURCE: CVTECH GROUP INC.
For further information:
André Laramée, MBA
President and Chief Executive Officer
Mario Trahan, CPA, CMA
Chief Financial Officer
Martin Goulet, CFA