EXFO Inc. (NASDAQ: EXFO) (TSX: EXF) board of directors has authorized the renewal of its share repurchase program, by way of a normal course issuer bid on the open market, of up to approximately 6.6 percent (900,000 subordinate voting shares) of the public float of 13,572,485 subordinate voting shares, the company said.
On March 21, 2016, EXFO had 22,305,802 subordinate voting shares outstanding. In the course of the previous renewal of its NCIB, EXFO repurchased a total of 194,389 shares, being 91,870 shares on the TSX at a weighted average amount of CAUSD3.87 and 102,519 shares on the NASDAQ Global Market (“NASDAQ”) at a weighted average amount of USD2.94. The previous renewal of the NCIB had been effective since March 27, 2015 and expired on March 26, 2016.
The TSX has accepted a notice filed by EXFO of its intention to renew its NCIB. EXFO may use cash, short-term investments and future cash flows from operations to fund the repurchase of shares. Repurchases under the bid will be made on the open market, through the facilities of the TSX and NASDAQ, at the prevailing market price. The timing of such repurchases, if any, will depend on price, market conditions and applicable regulatory requirements.
The NCIB will become effective on April 1, 2016 and end on March 31, 2017 or on an earlier date if EXFO repurchases the maximum number of shares permitted. The average daily trading volume (ADTV) of EXFO´s subordinate voting shares was 9,730 on the TSX and 22,074 on the NASDAQ for the most recently completed six calendar months.
Accordingly, EXFO is entitled to repurchase up to 25 percent of the ADTV on any trading day (being 2,432 subordinate voting shares on the TSX and 5,518 subordinate voting shares on the NASDAQ) or pursuant to the applicable rules of the TSX. The program does not require the company to repurchase a minimum number of shares and it may be modified, suspended or terminated at any time without prior notice. All shares acquired by EXFO under the bid will be cancelled.
EXFO has forged strong relationships with network solution vendors (NSVs) to develop deep expertise that migrates from the lab to the field and beyond.