Victoria's Vecima Networks Inc. (TSX:VCM) plans to acquire up to 550,000 common shares over the next 12 months to boost the company's stock price.
The normal course issuer bid represents about 2.4% of Vecima's issued and outstanding common shares and approximately 9.9% of the company's public float.
Vecima's board said the underlying value of the company might not be reflected in the market price of its shares and decided to buy back a portion of the company's public float. Approximately 58% of the company's shares are owned by Vecima CEO Surinder Kumar. According to Vecima's most recent information circular, another 17% is owned by Hugh Wood, the company's COO.
Over the last 12 months, Vecima, which designs and manufactures technology for wireless and telephony networks, spent more than $1.6 million to buy back 258,400 shares at a weighted average price of $6.23.
Vecima's share price range during the past week: between $5.80 and $5.99; 52-week high: $8.38; 52-week low: $3.75.