Satcoms service provider, Norsat International, has instigated a share buy-back process, according to a regulatory filing on the TSX. The Vancouver-based communication company obtained regulatory approval to purchase up to 10% of its public issue on the…
Satcoms service provider, Norsat International, has instigated a share buy-back process, according to a regulatory filing on the TSX. The Vancouver-based communication company obtained regulatory approval to purchase up to 10% of its public issue on the Toronto Stock Exchange.
The bid period begins on August 30, 2010 and closes on August 29, 2011, or earlier if it meets its 10% buy-back target before this date.
The company can purchase up to 25%, or 10,879 shares of its average daily trading volume over the last six months. The price paid will be the market price at the time of purchase and all common shares purchased under the normal course issuer bid will be cancelled.
In the preceding 12-month period, Norsat purchased 1,092,000 common shares at an average price of C$0.70 per common share, in a buy-back that ran from July 6, 2009 to July 5, 2010.
In May, Norsat was awarded a network service contract valued at C$1.7m (US$1.6m) from a military based in Europe.
SatelliteFinance reported in March the company had pulled out of the acquisition of Irish WiMAX specialist Bluemoon 4G.
Norsat had bought 100% of privately-held Bluemoon’s common stock for approximately five million of its own shares.
These shares were held in an escrow account, but then Norsat stated that following the expiration and subsequent non-renewal of its contract with Bluemoon, these shares have been returned to the company and the transaction will no longer take place.
Norsat did not give a reason as to why it had decided to pull the plug on the deal. Representatives of the company were not available for comment at the time of going to press.
