Tucows Announces $40 Million Stock Buyback Program

Rhea-AI Summary

Tucows announced a stock buyback program to repurchase up to $40 million of its common stock, commencing February 10, 2021. This new buyback program will terminate on or before February 9, 2022, and follows the termination of a previous program with the same value. The shares bought back will be retired and returned to treasury. The timing and number of shares purchased will depend on market conditions and available cash. Tucows intends to fund the buyback from working capital and existing credit facilities, with 10,615,725 shares outstanding as of February 8, 2021.

Positive

• The buyback program could enhance shareholder value by reducing the number of outstanding shares.
• Repurchasing shares may positively impact the company's earnings per share (EPS).

Negative

• The buyback may limit available cash for other investments or operational needs.

TORONTO, Feb. 09, 2021 (GLOBE NEWSWIRE) -- Tucows Inc. (NASDAQ: TCX, TSX: TC) announced today that its Board of Directors has approved a stock buyback program to repurchase, from time to time, up to $40 million of its common stock in the open market.

The new $40 million buyback program will commence February 10, 2021 and will terminate on or before February 9, 2022. Purchases for the new buyback program will be made exclusively through the facilities of the Nasdaq Capital Market. The previously announced $40 million buyback program for the period February 13, 2020 to February 12, 2021 has been terminated.

All shares purchased by Tucows under the stock buyback program will be retired and returned to treasury.

The timing and exact number of common shares purchased will be at Tucows’ discretion and will depend on available cash and market conditions. Tucows may suspend or discontinue the repurchases at any time, including in the event Tucows would be deemed to be making an acquisition of its own shares under Rule 13e-3 of the Securities Exchange Act of 1934, as amended. Subject to applicable securities laws and stock exchange rules, all purchases will occur through the open market and may be in large block purchases. Tucows does not intend to purchase its shares from its management team or other insiders.

The purchase will be funded from available working capital and existing credit facilities. As of February 8, 2021, Tucows had 10,615,725 common shares outstanding.

NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.

About Tucows
Tucows is a provider of network access, mobile technology services, domain names and other Internet services. Ting Internet (https://ting.com/internet) delivers fixed fiber Internet access with outstanding customer support. Tucows’ mobile services enabler (MSE) platform provides network access, provisioning and billing services for mobile virtual network operators (MVNOs). OpenSRS (https://opensrs.com), Enom (https://www.enom.com) and Ascio (https://ascio.com) combined manage approximately 25 million domain names and millions of value-added services through a global reseller network of over 36,000 web hosts and ISPs. Hover (https://hover.com) makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows’ corporate website (https://tucows.com).

This release includes forward-looking statements as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding our expectations regarding our future financial results and, including, without limitation, our expectations regarding our ability to realize synergies from the Enom acquisition and our expectation for growth of Ting Internet. These statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Information about other potential factors that could affect Tucows’ business, results of operations and financial condition is included in the Risk Factors sections of Tucows’ filings with the Securities and Exchange Commission. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. All forward-looking statements are based on information available to Tucows as of the date they are made. Tucows assumes no obligation to update any forward-looking statements, except as may be required by law.

Tucows, Ting, OpenSRS, Enom, Ascio and Hover are registered trademarks of Tucows Inc. or its subsidiaries.

Contact:
Lawrence Chamberlain
(416) 519-4196 | lawrence.chamberlain@loderockadvisors.com 

FAQ

What is the purpose of Tucows' stock buyback program?

The buyback program aims to enhance shareholder value and potentially increase earnings per share by reducing the number of outstanding shares.

When does Tucows' stock buyback program start and end?

The buyback program starts on February 10, 2021, and will end on or before February 9, 2022.

How much stock is Tucows planning to repurchase?

Tucows plans to repurchase up to $40 million of its common stock.

How will Tucows fund the stock buyback?

The buyback will be funded from available working capital and existing credit facilities.

How many shares does Tucows have outstanding as of February 8, 2021?

As of February 8, 2021, Tucows had 10,615,725 common shares outstanding.