Tucows Inc. Announces Preliminary Results of Tender Offer
TORONTO, March 16 /PRNewswire-FirstCall/ -- Tucows Inc. (AMEX:TCXAMEX:TSX:TC) a global provider of domain names, email and other Internet services, announced today the preliminary results of its modified Dutch auction tender offer, which expired at 5:00 p.m., New York City time, on March 13, 2009. Tucows expects to purchase 4,250,000 shares of its Common Stock at a purchase price of $0.41 per share, or a total of $1,742,500. The 4,250,000 shares expected to be purchased are comprised of the 4,000,000 shares Tucows offered to purchase and 250,000 shares to be purchased pursuant to Tucows' right to purchase up to an additional 2 percent of the shares outstanding immediately prior to the commencement of the tender offer. Due to over-subscription, Tucows expects the final proration factor for shares tendered at or below $0.41 per share to be approximately 99.8%. For this purpose, shares tendered at or below $0.41 per share will include shares tendered by those persons who indicated, in their letter of transmittal, that they are willing to accept the price determined in the offer. All shares purchased in the tender offer will receive the same price.
The price per share and the proration factor are preliminary and subject to verification by StockTrans, Inc., the depositary for the tender offer. The actual price per share and the proration factor will be announced promptly following completion of the verification process. After the determination of the actual price per share and the proration factor, the depositary will issue payment for the shares accepted under the tender offer and return all shares not accepted.
Tucows commenced the tender offer on February 12, 2009, when it offered to purchase up to 4,000,000 shares of its Common Stock at a price between $0.36 and $0.45 per share, net to the seller in cash, without interest. As a result of the completion of the tender offer, Tucows expects to have 68,823,782 shares issued and outstanding as of the time immediately following payment for the tendered shares. Subject to the rules and regulations of the Securities and Exchange Commission, Tucows may, from time to time at management's discretion, repurchase up to approximately 6,361,769 additional shares of its Common Stock on the open market under its previously authorized share buyback program.
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