TORONTO, June 19, 2019 /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").
Under the new bid, Pivot may purchase for cancellation up to 3,791,395 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 7, 2019, there were 39,473,032 common shares outstanding. The Company intends to cancel all shares purchased under the NCIB, being up to 3,791,395 common shares of the Company, or approximately 10% of the total public float as of June 7, 2019.
The renewed NCIB will commence on June 24, 2019 and continue until June 23, 2020, 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 21,015 common shares, representing 25% of 84,062, the average daily trading volume of the common shares calculated from December 1, 2018 to May 31, 2019, 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, 2019 (the "2018 NCIB"). Under the 2018 NCIB, the Company had obtained approval to purchase up to 3,789,551 common shares. The Company's 2018 NCIB began on June 22, 2018 and will conclude on June 21, 2019. Within the past 12 months, under the 2018 NCIB the Company repurchased through the facilities of the TSX, and cancelled, 347,500 common shares (as of June 12, 2019) at a weighted average purchase price of Cdn $1.87 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.
Forward Looking Statements
This news release contains statements that, to the extent they are not recitations of historical fact, may constitute "forward-looking statements" within the meaning of applicable Canadian securities laws. Forward-looking statements include, but are not limited to, statements with respect to the proposed NCIB by the Company and management's expectations regarding the Company's plans to repurchase for cancellation common shares under the renewed NCIB. Pivot uses words such as "may", "would", "could", "will", "likely", "expect", "believe", "intend", "anticipate" and similar expressions to identify forward-looking statements. Any such forward-looking statements are based on assumptions and analyses made by Pivot in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors Pivot believes are appropriate under the relevant circumstances. However, whether actual results and developments will conform to Pivot's expectations and predictions is subject to any number of risks, assumptions and uncertainties. Many factors could cause Pivot's actual results to differ materially from those expressed or implied by the forward-looking statements contained in this news release. These factors include, without limitation: regulatory compliance, market and economic conditions, availability of sellers, changes in laws and regulations, operating efficiencies and cost saving initiatives. The "forward-looking statements" contained herein speak only as of the date of this news release and, unless required by applicable law, the Company undertakes no obligation to publicly update or revise such information, whether as a result of new information, future events or otherwise.
SOURCE Pivot Technology Solutions, Inc