The majority stakeholder of Vancouver-based Maximizer Software Inc. (TSX:MAX) is considering taking the company private.
Terence Hui, Maximizer's board chairman, said he and members of his family who own the company that holds 69% of Maximizer shares are exploring a deal under which shareholders could receive $0.135 per share in cash.
The proposed purchase price would represent a 104% premium over the weighted average trading price of Maximizer shares for the past 20 trading days.
Hui is considering going private to reduce the company's expenses associated with keeping the company public. He noted that the costs of compliance continue to rise.
No agreement has been signed with minority shareholders, and completion of any deal remains subject to several conditions, including formal valuation of Maximizer shares by an independent valuator in addition to negotiation and signing of an agreement and regulatory and shareholder approvals.
Maximizer's share price range during the past week: between $0.06 and $0.08; 52-week high: $0.15; 52-week low: $0.05.