Logistec Corporation
TSX : LGT.A
TSX : LGT.B

Logistec Corporation

October 16, 2007 13:20 ET

Logistec Corporation Launches a Normal Course Issuer Bid

MONTREAL, QUEBEC--(Marketwire - Oct. 16, 2007) - LOGISTEC CORPORATION ("Logistec")(TSX:LGT.A)(TSX:LGT.B) announced today that it is launching a normal course issuer bid. Logistec believes that the purchase of its shares makes appropriate and desirable use of its available cash. Therefore, Logistec believes that the offer is in the best interests of Logistec and its shareholders.

The Toronto Stock Exchange (the "Exchange") has accepted a notice filed by Logistec of its intention to make a normal course issuer bid. According to the notice, Logistec intends to purchase, for cancellation, in accordance with the Rules and Policies of the Exchange i) up to 190,113 Class A Common Shares ("Class A Shares"), representing 5% of the outstanding Class A Shares and ii) up to 143,669 Class B Subordinate Voting Shares ("Class B Shares"), representing 5% of the outstanding Class B Shares.

The average daily trading volume of Logistec's Class A Shares and Class B Shares over the late six completed calendar months was 74 and 1,763, respectively (the "ADTV"). Accordingly, under the Exchange Rules and policies, Logistec is entitled on any trading day to purchase up to 1,000 Class A Shares and Class B Shares. Once a week, in excess of the daily 1,000 repurchase limit, Logistec may also purchase a block of shares of any category not owned by an insider (i) having a purchase price of $200,000 or more, (ii) of at least 5,000 shares having a purchase price of at least $50,000, or (iii) of at least 20 board lots of shares which total 150% or more of the ADTV in accordance with Exchange rules. Logistec has retained Salman Partners Inc. as broker to manage the program.

Logistec has purchased some of its shares within the past twelve (12) months pursuant to a normal course issuer bid which began on October 18, 2006 and will terminate no later than October 19, 2007. The purchases were executed through the facilities of the Exchange. 2,000 Class A Shares and 42,500 Class B Shares were purchased at a weighted average price of $ 22.75 and $ 19.82, respectively.

The normal course issuer bid will begin on October 22, 2007 and will terminate no later than October 21, 2008. All purchases will be made through the facilities of the Exchange at the discretion of Logistec's management, as and when it will deem the market price of the Class A Shares or of the Class B Shares to be favourable to the reduction of its outstanding share capital. The purchase of and payment for the shares will be made by Logistec in accordance with the Rules and Policies of the Exchange and the price Logistec will pay for any shares will be the market price of such shares at the time of acquisition. As of the close of business on October 12, 2007, there were 3,802,274 Class A Shares and 2,873,387 Class B Shares outstanding.

Contact Information

  • Logistec Corporation
    Jean-Claude Dugas
    Vice-President, Finance
    514-844-9381