CALGARY, ALBERTA--(Marketwired - May 21, 2015) - Computer Modelling Group Ltd. ("CMG" or the "Company") (TSX:CMG) today announced that the Toronto Stock Exchange ("TSX") has accepted CMG's Notice of Intention to make a Normal Course Issuer Bid (the "Bid") through the facilities of the TSX. The Bid will permit the Company to purchase for cancellation up to 7,446,987 Common Shares of the Company, representing approximately 10% of CMG's public float, which was 74,469,870 at May 12, 2015. As at May 12, 2015 CMG's issued and outstanding shares were 78,543,457 Common Shares.
Purchases pursuant to the Bid may commence on May 25, 2015 and will terminate on May 24, 2016 or such earlier time as the Bid is completed or terminated at the option of CMG. The price which CMG will pay for any shares purchased will be the prevailing market price of the Common Shares on the TSX at the time of such purchase. The actual number of shares that may be purchased for cancellation and the timing of any such purchases will be at the discretion of CMG, subject to a maximum daily purchase limit of 28,063 shares, which equals 25% of CMG's average daily trading volume for the six months prior to May 1, 2015, other than block purchase exceptions. The average daily trading volume for such period was 112,252.
CMG believes that, from time to time, the market prices of its Common Shares may not fully reflect the underlying value of its assets and business and that, at such times, the purchase of shares would be in the best interests of CMG. Such purchases will increase the proportionate interest of, and may be advantageous to, all remaining shareholders. In addition, the purchase of shares by the Company may increase liquidity of the Common Shares.
Under its most recent normal course issuer bid which commenced on May 5, 2014 and expired on May 4, 2015, CMG repurchased 808,600 Common Shares at an average price of $12.12. These Common Shares were acquired through the facilities of the TSX.
Computer Modelling Group Ltd. is a computer software technology and consulting company serving the oil and gas industry. CMG, recognized by oil and gas companies worldwide as a leading developer of reservoir modelling software, has sales and technical support services based in Calgary, Houston, London, Caracas, Dubai, Bogota and Kuala Lumpur. CMG is the leading supplier of advanced processes reservoir modelling software in the world with a blue chip client base of international oil companies and technology centers in approximately 60 countries. The Company's shares are listed on the Toronto Stock Exchange under the trading symbol "CMG."
Forward Looking Statements: The reader should be aware that historical results are not necessarily indicative of future performance. Certain statements in this press release may constitute forward-looking statements, which can generally be identified as such because of the context of the statements including words such as the Company believes, anticipates, expects, plans, estimates or words of a similar nature. The forward-looking statements are based on current expectations and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results.