[p]This PR is showing that management considers the Market is NOT appreciating the revenue stream and projects in the share price.
Present shareholders should appreciate the planned buyback of shares.
" ("Kontrol" or "Company") is pleased to announce that it intends to reinstitute the Normal Course Issuer Bid ("NCIB") commencing on July 8th, 2019.
The Company's management and directors believe that from time to time the market price of Kontrol's Common Share price does not reflect the underlying value of the business and that the purchase of Common Shares for cancellation at such times is a prudent corporate measure that will both increase the proportionate interest in the Company of, and be advantageous to, all of the Company's remaining shareholders. The purpose of the NCIB is to facilitate this process.
On April 10, 2018, our Board of Directors announced its intention to make a Normal Course Issuer Bid to purchase, through the facilities of the Canadian Securities Exchange ("CSE"), certain of its common shares. The previously announced NCIB expired April 16th, 2019. 85,000 Common Shares were purchased pursuant to the NCIB will be cancelled by the Company and returned to Treasury.
As of July 2, 2019, the Company had 29,283,123 common shares issued and outstanding. Under the terms of the NCIB, Kontrol may acquire up to 1,464,156 of its Common Shares, representing 5% of its issued and outstanding common shares. Such Common Shares will be purchased only when and if the Company considers it advisable. The Company may purchase up to 5,125 Common Shares in any one trading day, being 25% of the average trading volume of the Common Shares on the Canadian Securities Exchange (CSE) over the past six-months and may purchase once per calendar week, in a block trade, a greater number of Common Shares. The Company has appointed PI Financial Corporation to coordinate and facilitate its NCIB purchases.
The NCIB will terminate on the earlier of July 8, 2020 and the date on which the maximum number of Common Shares that can be acquired pursuant to the NCIB have been purchased. All shares Common Shares purchased by the Company will be purchased on the open market through the facilities of the CSE and/or alternate Canadian trading systems at the market price at the time of purchase. Any Common Shares purchased pursuant to the NCIB will be cancelled by the Company.
Kontrol is planning to enter an Automatic Share Purchase Plan ("ASPP") under which a designated broker could purchase Common Shares pursuant to the NCIB on parameters established by the Company. The purpose of the ASPP is to permit Kontrol to purchase shares under its NCIB during internal blackout periods when Kontrol will not be permitted to trade in its shares, including regularly scheduled quarterly blackout periods."
