International Datacasting Corporation
TSX : IDC

International Datacasting Corporation

December 15, 2011 11:10 ET

International Datacasting Corporation Announces Acceptance of Normal Course Issuer Bid

Attn: Business/High-Tech Editors

OTTAWA, ONTARIO--(Marketwire - Dec. 15, 2011) - International Datacasting Corporation (TSX:IDC) ("IDC" or the "Corporation") announced today that the Toronto Stock Exchange (the "TSX") has accepted IDC's notice of intention to make a normal course issuer bid. Under the terms of the normal course issuer bid, IDC may acquire up to 4,846,288 of its common shares (the "common shares"), representing 10% of its public float as at November 30, 2011, through the facilities of the TSX and acceptable alternative Canadian markets including, without limitation, the Pure Trading, Triact (Matchnow ATS), CHI-X ATS, Omega ATS and Alpha Trading Systems, subject to applicable securities laws. As of November 30, 2011 IDC had 60,436,163 common shares issued and outstanding, of which 48,462,881 common shares constituted its public float.

The purchases may commence on December 19, 2011, subject to compliance with IDC's insider trading policy. Purchases pursuant to the bid will terminate on December 18, 2012, or on such earlier date as IDC may complete its purchases pursuant to the notice of intention to make a normal course issuer bid filed with the TSX.

IDC's normal course issuer bid will be subject to the rules of the TSX and applicable securities laws. As of end of day on November 30, 2011, the average daily trading volume of IDC's common shares for the past six months on the TSX is 32,992 common shares. Except pursuant to exceptions for block purchases, the number of shares that may be purchased on the TSX on any trading day is limited to 25% of the average daily trading volume on the TSX, based on the six months ended November 30, 2011 (which, with respect to the TSX only, is 8,248 common shares). Notwithstanding that the total number of common shares that the Corporation may purchase pursuant to the normal course issuer bid is limited to 4,846,288 common shares, the total number of common shares that the Corporation may purchase on acceptable Canadian markets other than the TSX pursuant to the bid is limited to 3,021,808 common shares (being 5% of the total number of IDC's issued and outstanding common shares as at November 30, 2011). All common shares acquired by IDC under the normal course issuer bid will be cancelled. The specific timing and amount of share purchases will vary based on market conditions, regulatory requirements and other factors.

IDC will pay the market price at the time of acquisition of common shares purchased through the facilities of the TSX or any acceptable alternative Canadian market, in accordance with the rules of the TSX and applicable securities laws.

Subject to the review of the TSX, the Corporation may adopt an automatic share purchase plan with its designated broker that would allow for the repurchase of common shares at times when IDC is prohibited from being active in the market due to its own internal trading blackout periods.

IDC is initiating the NCIB because it believes that, at certain times, its common shares may trade at a range that may not reflect the underlying value of its business and its future prospects. The objective of the normal course issuer bid is to provide capital appreciation and market stability for the benefit of IDC's shareholders.

IDC has not previously engaged in a normal course issuer bid.

Forward-Looking Statements

Certain statements in this release constitute forward-looking statements within the meaning of applicable securities laws reflecting IDC's objectives, estimates and expectations. Such statements may be marked by the use of words such as "believe", "anticipate", "estimate", "looking ahead", "outlook" and "expect" as well as the conditional or future tense. Forward-looking statements include statements as to IDC's views regarding the market price of its common shares, its plans to undertake a normal course issuer bid, and the objectives of the normal course issuer bid. These statements are subject to certain assumptions, risks and uncertainties. Actual results may differ materially. Factors that might cause actual results to differ materially include, but are not limited to, competitive developments, risks associated with IDC's growth, any difficulties with integrating acquired product lines into IDC's business and/or manufacturing procedures, any difficulties or disputes with IDC's subcontractors, contract manufacturers and suppliers, the development of the satellite datacasting market, regulatory risks, intellectual property infringement, changes in estimates of our future results of operations by IDC or securities analysts and other factors. The forward-looking statements are subject to change and IDC assumes no obligation to update or revise these forward-looking statements to reflect events or circumstances after the date hereof except as expressly required by applicable law. Forward-looking statements are provided to assist external stakeholders in understanding IDC's expectations as at the date of this release and may not be appropriate for other purposes. Readers are cautioned not to place undue reliance on such statements. More detailed information about potential factors that could affect IDC's financial and business results is included in the public documents IDC files from time to time with Canadian securities regulatory authorities and which are available on SEDAR at www.sedar.com, including, without limitation, IDC's Annual Information Form dated April 29, 2011.

About International Datacasting Corporation (IDC)

International Datacasting Corporation (TSX:IDC) is a global leader in digital content distribution for the world's premiere broadcasters in radio, television and digital cinema. IDC offers a broad portfolio of advanced solutions including Pro Audio, Pro Video, Pro Cinema and Pro Data for implementing broadcast content contribution and distribution applications. IDC's solutions and IDC Systems are in demand for radio and television networks, digital cinema, 3D live events, distance learning, satellite news gathering, sport contribution, digital signage, and IPTV among others. IDC is headquartered in Ottawa, Canada, with regional offices in Arnhem, the Netherlands and in San Diego, California. IDC has installations in over 100 countries and service offices in Australia, Singapore and China with an international network of value-added partners and distributors.

Contact Information

  • International Datacasting Corporation
    Christine Rozak
    Director, Marketing and Communications
    613-596-4120
    crozak@datacast.com