Hartco Inc

August 26, 2010 11:53 ET

Hartco Announces Normal Course Issuer Bid

MONTREAL, QUEBEC--(Marketwire - Aug. 26, 2010) - Hartco Inc. (TSX:HCI) today announced that the Toronto Stock Exchange has approved the renewal of Hartco's normal course issuer bid (the "Bid") to purchase for cancellation up to 5% of Hartco's issued and outstanding common shares, or 668,554 common shares, through the facilities of the Toronto Stock Exchange over the twelve-month period starting on August 30, 2010 and ending on August 29, 2011.

The purchases made by Hartco under the Bid will be at the market price of the common shares at the time of any such purchases.  As at August 20, 2010, there were 13,371,090 Hartco common shares issued and outstanding. 

During the period from February 1, 2010 to July 31, 2010, the average daily trading volume for the common shares of Hartco on the TSX was 6,980 shares.  Consequently, under the policies of the TSX, Hartco will have the right to repurchase, during any one trading day, a maximum of 1,745 common shares, representing 25% of the average daily trading volume from February 1, 2010 to July 31, 2010.  In addition, Hartco may make, once per calendar week, a block purchase (as such term is defined in the TSX Company Manual) of common shares not directly or indirectly owned by insiders of Hartco, in accordance with the policies of the TSX.

Under its current Bid, which entered into effect on August 28, 2009 and which expires on August 27, 2010, Hartco has repurchased, as of July 31, 2010, 211,400 common shares at a weighted average purchase price of $2.99 per share.  All of the repurchased shares were cancelled by Hartco.

The Board of Directors of Hartco considers that the repurchase of shares at certain market prices constitutes an appropriate use of financial resources and will be beneficial to Hartco.

Any purchases made pursuant to the normal course issuer bid will be made in accordance with the requirements of the Toronto Stock Exchange.  Hartco will make no purchases of common shares other than open market purchases during the period of the Bid.  To the knowledge of Hartco, no director or officer of Hartco intends to sell Hartco shares while the normal course issuer bid is in effect.

About Hartco Inc.

Hartco Inc. (TSX:HCI) has been a leader in the Canadian information technology business for more than thirty years. Through its operating divisions, which together include more than 50 locations across Canada, Hartco Inc. delivers information technology solutions to private and public sector organizations of every size. For more information, please visit www.hartco.com.

Forward-Looking Statements

This news release contains forward-looking information. Except for historical information contained herein, the statements in this document are forward-looking. Forward-looking statements involve known and unknown risks and uncertainties, which may cause actual results in future periods to differ materially from forecasted results. Those risks include, among others, changes in customer demand for information technology products or services, changes in supplier pricing actions or terms, customer orders, pricing actions by competitors, changes in laws and regulations and general changes in economic conditions. Risks that could cause our results to differ materially from our expectations are discussed in our Annual Management's Discussion & Analysis.

This press release shall not constitute the solicitation of an offer to buy any securities, nor shall there be any purchase of the securities in any jurisdiction in which such offer, solicitation or purchase would be unlawful.

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