Tucows Announces $40 Million Stock Buyback Program

Rhea-AI Summary

Tucows has approved a $40 million stock buyback program to repurchase its common stock over the next year. This buyback will commence on February 11, 2022, and run until February 10, 2023, replacing the previously announced buyback program. All repurchased shares will be retired and returned to treasury. The buyback will be funded through available working capital and existing credit facilities. As of February 9, 2022, Tucows had 10,753,079 shares outstanding.

Positive

• Initiation of $40 million stock buyback program could enhance shareholder value.
• Shares repurchased will be retired, potentially increasing earnings per share (EPS).
• Commitment to using available working capital ensures financial stability during buyback.

Negative

• None.

TORONTO, Feb. 10, 2022 (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 11, 2022 and will terminate on or before February 10, 2023. 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 10, 2021 to February 9, 2022 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 9, 2022, Tucows had 10,753,079 common shares outstanding.

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

About Tucows

Tucows helps connect more people to the benefit of internet access through communications service technology, domain services, and fiber-optic internet infrastructure. Ting (https://ting.com/internet) delivers fixed fiber Internet access with outstanding customer support. Wavelo (https://wavelo.com) is a telecommunications software suite for service providers that simplifies the management of mobile and internet network access, provisioning, billing and subscription, developer tools, and more. 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 35,000 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, Wavelo, 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 stock buyback program aims to enhance shareholder value by repurchasing shares, which will be retired and returned to treasury.

When does the new stock buyback program for TCX commence?

The new stock buyback program for Tucows will commence on February 11, 2022.

How much is Tucows planning to spend on the stock buyback program?

Tucows has approved a stock buyback program of up to $40 million.

How many shares does Tucows have outstanding as of February 9, 2022?

As of February 9, 2022, Tucows had 10,753,079 common shares outstanding.

What financial resources will Tucows use for the buyback program?

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