Absolute Software Announces Approval of Normal Course Issuer Bid
Vancouver, Canada – November 17, 2010–Absolute® Software Corporation(the “Company”) announced today that it is proceeding with a normal course issuer bid for up to 3,263,702 common shares of the Company (the “Bid”), representing approximately 10% of the public float of the Company. On November 9, 2010, the Company had 44,907,754 common shares outstanding. The Company has received approval from the TSX to commence this bid on November 19, 2010. Purchases will be made on the TSX at the market price at the time of acquisition.
The Company’s previous normal course issuer bid expired on November 5, 2010, and under such bid the Company purchased and cancelled 2,372,500 of its common shares at an average price of $3.83 per common share. The Company’s new normal course issuer bid will terminate on November 18, 2011 or earlier if the number of shares sought in the Bid has been purchased. The Company reserves the right to terminate the bid earlier if it feels it is appropriate to do so.
The Company believes that its common shares are undervalued at current market prices based on its current earnings and future prospects and that the repurchase of common shares at current market prices is an appropriate use of corporate funds.
All shares will be purchased on the open market through the facilities of the TSX, and payment for the shares will be in accordance with TSX policies. The price paid for the shares will be the market price at the time of purchase. Purchasing may be suspended at any time. No purchases will be made other than by means of open market transactions during the term of the normal course issuer bid. The maximum number of shares that may be purchased on a daily basis is 13,171 shares, representing 25% of the average daily trading volume for the Company of 52,687 shares, except where purchases are made in accordance with “block purchases” exemptions under applicable TSX policies. The shares purchased by the Company will be cancelled.
The Company has engaged Macquarie Capital Markets Canada Ltd. to act as broker and to administer the Bid under an automatic share purchase plan on a blinded basis. While the Bid is subject to pre-determined pricing and volume restrictions imposed by the Company, Macquarie will make all purchases under the Bid without input from the Company.
Certain directors, officers or other insiders of the Company may sell common shares during the Bid. In the event the automatic share purchase plan is cancelled or suspended during the term of the Bid and any director, senior officer or other insider of the Company intends to sell any common shares during such period, the Company will suspend purchases under the Bid until such person’s sales are completed. 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.
Absolute empowers more than 12,000 customers worldwide to protect devices, data, applications, and users against theft or attack — both on and off the corporate network. With the industry’s only tamper-proof endpoint visibility and control solution, Absolute allows IT organizations to enforce asset management, security hygiene, and data compliance for today’s remote digital workforces. Absolute’s patented Persistence®technology is embedded in the firmware of Dell, HP, Lenovo, and 22 other leading manufacturers’ devices for vendor-agnostic coverage, tamper-proof resilience, and ease of deployment. See how it works atwww.absolute.comand follow us at@absolutecorp.
This press release contains forward-looking statements and financial outlook that involve risks and uncertainties. These forward-looking statements and financial outlook relate to, among other things, the expected performance, functionality and availability of the Company’s services and products, and other expectations, intentions and plans contained in this press release that are not historical facts. When used in this press release, the words “plan,” “expect,” “believe” and similar expressions generally identify forward-looking statements. These statements reflect the Company’s current expectations. They are subject to a number of risks and uncertainties, including, but not limited to, changes in technology and general market conditions. In light of the many risks and uncertainties, readers of the press release should understand that Absolute cannot assure them that the forward-looking statements and financial outlook contained in this press release will be realized. Furthermore, the forward-looking statements and financial outlook contained in this press release are made as of the date hereof and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements and financial outlook, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.