Melcor Developments Ltd.

Melcor Developments Ltd.

August 30, 2011 15:35 ET

Melcor Developments Ltd. (TSX:MRD) Announces Intention to Make Normal Course Issuer Bid

EDMONTON, ALBERTA--(Marketwire - Aug. 30, 2011) - Melcor Developments Ltd. (the "Company") (TSX:MRD) announced today acceptance by the Toronto Stock Exchange (the "TSX") of its Notice of Intention to make a Normal Course Issuer Bid through the facilities of the TSX or alternative Canadian trading platforms.

The Company is proposing to purchase, for cancellation, 1,512,274 Common Shares, which represents 5% of the issued and outstanding Common Shares of the Company for a period commencing September 1, 2011 to August 31, 2012 (the "Purchase Period"). As at the close of business on August 26, 2011 the total number of issued and outstanding Common Shares of the Company was 30,245,497. The maximum number of Common Shares that the Company may purchase pursuant to the Issuer Bid in any single day (unless other exemptions are available) is 4,386 Common Shares.

The Company had a Normal Course Issuer Bid in place for the period August 3, 2010 to August 2, 2011. The Company purchased an aggregate of 277,500 Common Shares, at an average trading price of $11.65 per Common Share, under that Normal Course Issuer Bid.

The Company's board of directors and management believe that the purchase by the Company of its outstanding Common Shares pursuant to the Normal Course Issuer Bid constitutes a prudent investment of corporate funds and a sound business decision in relation to alternative investment opportunities presently available to the Company as, in their opinion, the shares are undervalued when considered against the assets and liabilities of the Company and in light of its current and potential earnings.

The Company may commence purchases of Common Shares on September 1, 2011, at times and in quantities determined by it. All purchases will be made on the open market through the facilities of the TSX in accordance with its policies. The price to be paid for the Common Shares will be the market price at the time of acquisition.

Contact Information

  • Melcor Developments Ltd.
    Business Contact
    Ralph B. Young
    President & CEO
    (780) 423-6931

    Melcor Developments Ltd.
    Investor Relations
    Jonathan Chia, CA
    VP Finance & CFO
    (780) 423-6931