Pivot Technology Solutions, Inc. Launches Normal Course Issuer Bid
TORONTO, June 20, 2018 /CNW/ - Pivot Technology Solutions, Inc. (TSX: PTG), ("Pivot"), a full-service information technology provider, today announced that it has received regulatory approval for a normal course issuer bid ("NCIB").
Pivot Technology Solutions, Inc. (CNW Group/Pivot Technology Solutions, Inc)
Under the new bid, Pivot may purchase for cancellation up to 3,789,551 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"). As of June 11, 2018, there were 39,819,389 common shares outstanding. The Company intends to cancel all shares purchased under the NCIB, being up to 3,789,551 common shares of the Company, or approximately 10% of the total public float as of June 11, 2018.
The renewed NCIB will commence on June 22, 2018 and continue until June 21, 2019, unless completed or terminated earlier and will be effected through the facilities of TSX.
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 17,823 common shares, representing 25% of 71,292, the average daily trading volume of the common shares calculated from December 1, 2017 to May 31, 2018, 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.
"Our Board of Directors authorized this bid because in its view, share repurchases provide an advantageous use of capital that ultimately will benefit shareholders," said Kevin Shank, President and Chief Executive Officer. "As we continue to execute our core growth strategies, the NCIB will provide us with another tool to complement our value creation initiatives."
The NCIB follows the Company's normal course issuer bid for the 12 months ended June 21, 2018 (the "2017 NCIB"). Under the 2017 NCIB, the Company had obtained approval to purchase up to 3,820,852 common shares. The Company's 2017 NCIB began on June 22, 2017 and will conclude on June 21, 2018. Within the past 12 months, the Company repurchased through the facilities of the TSX, and cancelled, 915,300 common shares (as of June 11, 2018) at a weighted average purchase price of Cdn $2.13 per common share.
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.