Press Release – BlackBerry Announces Changes to Common Share Purchase Program

 

Waterloo
Waterloo, Ontario

29 Jan 2016

Earlier today BlackBerry announced it received approval from the Toronto Stock Exchange (TSX) to increase its’ holding up to an additional 15,000,000 shares.

“Under TSX rules, BlackBerry is allowed to purchase daily, through the facilities of the TSX, a maximum of 578,619 common shares representing 25% of the average daily trading volume, as calculated per the TSX rules. The average daily trading volume for the six months ended May 31, 2015 was 2,314,477 common shares. In addition, BlackBerry may make, once per week, a block purchase of common shares not directly or indirectly owned by insiders of BlackBerry, in accordance with TSX rules. All shares purchased pursuant to the NCIB are cancelled.”

Furthermore they announced, “During the period from June 29, 2015 to January 29, 2016, BlackBerry purchased and cancelled a total of 9,921,454 common shares, representing 2.1% of the public float as at June 22, 2015, at a weighted price of US$7.43 per share.”

BlackBerry’s Board of Directors believes that “the purchase by BlackBerry of its common shares represents attractive investment given current equity market conditions, and does not expect that the amended NCIB will have a significant impact on BlackBerry’s cash balance.

 

The entire Press Release can be viewed here.

Rob

kayaker co-pilot Tucson, it's a dry heat!

  • Observation Junkie

    Does this mean that by purchasing it’s own shares, the company is trying to turn it self back into a private company?

    • bartron

      Unlikely, IMO. At the current price of $10/share, it would cost them $5.26B to buy all the 526,114,499 outstanding shares on the TSX. And they need the money for acquisitions and growing expenses, not to mention other stuff.

      It’s too bad, though, because you can be sure that the management team would have wanted to turn BlackBerry into a private company before starting the turnaround.

      I imagine this buyback is to reduce dilution and return some money to shareholders.

    • Ninja

      “The board of directors of BlackBerry believes that the purchase by BlackBerry of its common shares represents attractive investment given current equity market conditions, and does not expect that the amended NCIB will have a significant impact on BlackBerry’s cash balance.”

      I’m no economist but in accordance with some implications, BlackBerry is heading up due to growth and stock attractiveness due to different reasons. On the other side, the rotten apple might be heading down due to their slow sales and some complications they may encounter from competitions or legal entities or even their loyal customers being fed up with crApple.

  • bambinoitaliano

    My understanding is two reasons. To increase the value of the shares and to stave off shareholders who are trying to take control stake of the company.

  • Observation Junkie

    Thanks guys, now I have a little more understanding

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