CounterPath Announces Renewal of Normal Course Issuer Bid
Company Believes Its Common Shares Do Not Adequately Reflect Their
Underlying Value and May Purchase Its Common Shares in the Market
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/14/13 --
CounterPath Corporation ("CounterPath" or the "Company")
(TSX:CCV)(NASDAQ:CPAH), an award-winning provider of desktop and
mobile VoIP software products and solutions, announced today that the
Toronto Stock Exchange ("TSX") has accepted its Notice of an
Intention to Make a Normal Course Issuer Bid ("NCIB") which shall
commence on March 19, 2013 and terminate on March 18, 2014, or such
earlier date when the maximum number of shares are purchased.
Under the NCIB, the Company may acquire up to an aggregate of
2,462,365 common shares over the next 12-month period representing
approximately 10% of the public float of the Company. There were
41,898,579 common shares of the Company issued and outstanding as of
March 11, 2013.
CounterPath believes that its common shares currently trade in a
price range that does not adequately reflect their underlying value
based on CounterPath's business prospects and strong financial
Purchases subject to this NCIB will be carried out pursuant to open
market transactions through the facilities of the TSX or such other
stock exchange or quotation system upon which the Company's shares
are then listed or quoted, including other Canadian marketplaces, by
National Bank Financial Inc. on behalf of CounterPath in accordance
with applicable regulatory requirements.
CounterPath also announces that it has entered into an automatic
share purchase plan (the "Plan") with its broker, National Bank
Financial Inc., in order to facilitate purchases of its common shares
under the NCIB. Under the Plan, the broker may purchase shares on
CounterPath's behalf under the NCIB at times when CounterPath would
ordinarily not be permitted to purchase shares due to internal
trading blackout periods, insider trading rules or otherwise. The
Plan has been approved by the TSX and will be implemented as of March
19, 2013. Purchases will be made by CounterPath's broker on the open
market based upon the parameters prescribed by the TSX, applicable
laws and the terms and conditions of the Plan.
During the twelve-month period ended March 11, 2013, CounterPath
purchased 91,128 common shares at a volume weighted average price of
$2.03 pursuant to its normal course issuer bid.
The Company is permitted to make block purchases once per calendar
week in accordance with the rules of the TSX. Daily repurchases under
the NCIB will be restricted to 1,220 shares representing 25% of the
average daily trading volume of 4,881 shares, subject to certain
prescribed exemptions. All common shares purchased by the Company
under the NCIB will be returned to treasury and cancelled.
To the knowledge of CounterPath, no director, senior officer or other
insider of CounterPath currently intends to sell any common shares
under this bid. However, sales by such persons through the facilities
of the TSX may occur if the personal circumstances of any such person
change or if any such person makes a decision unrelated to these
normal course purchases. The benefits to any such person whose shares
are purchased would be the same as the benefits available to all
other holders whose shares are purchased.
CounterPath's standards based VoIP softphones are changing the face
of telecommunications. The BYOD VoIP favorite, Bria softphone for
mobile devices and desktop, together with the company's easy-to-use
client management, provisioning and configuration server enables
enterprises, service providers, and OEMs around the globe to offer a
seamless and unified communications experience across both fixed and
mobile networks. Standards-based, cost-effective and reliable,
CounterPath's award-winning solutions power voice, video, messaging,
and presence that empower customers such as Alcatel-Lucent, AT&T,
Verizon, BT, Mobilkom Austria, NTT, Rogers, Avaya, BroadSoft, Cisco
Systems, GENBAND, Metaswitch Networks, Mitel and NEC. For more
information about CounterPath's Bria softphone applications and CCS
solutions, visit: www.counterpath.com/products.
Chief Financial Officer
(416) 815-0700 x253
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