MARKHAM, ONTARIO--(Marketwired - April 11, 2014) - Enghouse Systems Limited ("Enghouse" or the "Company") (TSX:ESL) today announced its intention to renew its normal course issuer bid for its common shares ("Common Shares") in accordance with the requirements of the Toronto Stock Exchange.
Enghouse continues to have significant cash reserves and positive cash flow. The Company is renewing its normal course issuer bid program because it believes that from time to time the market price of its Common Shares may be attractive and that at such times, the purchase of Common Shares would be in the best interest of the Company and an appropriate use of corporate funds.
The Company may purchase up to a maximum of 1,802,756 Common Shares, representing approximately 10% of the publicly listed float. As of close of business on April 2, 2014, the Company had 26,098,462 outstanding Common Shares. The price at which the Company may purchase such shares will be the market price at the time of acquisition and any Common Shares purchased under the bid will be cancelled. The actual number of Common Shares that may be purchased and the timing of any such purchases will be determined by the Company, subject to price, trading volume and other market considerations. Daily purchases will be limited to 7,525 Common Shares, other than block purchases. An automatic purchase plan will not be put in place at the commencement of the bid but may be put in place at some point in the future.
The bid will commence on April 16, 2014 and will terminate on April 15, 2015, unless the maximum number of shares that may be purchased thereunder has been acquired before that time. The purchases will be made through the facilities of the Toronto Stock Exchange. During the 12 months preceding the date of the bid, the Company did not acquire any of its Common Shares.
Enghouse Systems Limited is a publicly traded Canadian based software and services company founded in 1984. Enghouse shares are traded on the Toronto Stock Exchange (TSX) under the symbol "ESL". Enghouse serves a number of distinct vertical markets through its three divisions, each developing and selling enterprise oriented applications software. Further information about Enghouse may be obtained from the Company's web site at www.enghouse.com.