CMG Announces Normal Course Issuer Bid
In a recent announcement, Computer Modelling Group Ltd. (“CMG” or the “Company”) (TSX: CMG) revealed its intention to commence a Normal Course Issuer Bid ("NCIB") for its common shares. This initiative has received approval from the Toronto Stock Exchange ("TSX"). As part of this strategic move, CMG has also set up an automatic share purchase plan ("ASPP") with its designated broker, paving the way for efficient purchases of its shares.
CEO Statement on Strategic Intent
According to Pramod Jain, CEO of CMG, the company is dedicated to pursuing acquisition opportunities that align with its disciplined return thresholds. He emphasized, "The NCIB allows us the flexibility to balance various paths, ensuring we can allocate capital where it can create the most long-term value for our shareholders." This dual approach signifies their commitment to enhancing shareholder returns while also exploring growth avenues.
Details of the Normal Course Issuer Bid
CMG may purchase up to 4,136,475 Shares over a period extending from November 14, 2025, to November 13, 2026, or until the completion of its stock buybacks. This amount represents 5% of all issued and outstanding shares as of November 3, 2025. On that date, CMG had 82,729,510 Shares in circulation. Daily purchases will be limited to 53,297 Shares, constituting 25% of the average daily trading volume over the last six calendar months.
Market Operations and Compliance
Share repurchases varying from the outlined daily limits can take place until the existing approval is completed or revoked. All transactions will occur through the TSX and alternative Canadian trading mechanisms at the current market pricing. Each repurchased share will be cancelled immediately, enhancing the value of remaining shares.
Automatic Share Purchase Plan in Focus
The ASPP is designed to facilitate share purchases during periods when CMG cannot usually engage in buybacks due to regulatory constraints. It empowers the designated broker to make purchases according to parameters established by CMG, ensuring compliance with TSX regulations and legal requirements.
Board's Perspective on Market Value
The CMG Board is confident that there are times when the market price of its Shares does not reflect the broader value of the Company’s operations. They believe that through strategic repurchases, the company can effectively utilize corporate funds to nurture its best interests. These buybacks are also designed to provide added value to shareholders by increasing their equity stake in the company.
About Computer Modelling Group Ltd.
CMG (TSX:CMG) is a leading global software and consulting firm dedicated to resolving complex challenges in subsurface and surface areas within the new energy sector. With its headquarters located in Calgary, it operates globally in locations such as Houston, Dubai, and Bengaluru. The company is recognized for merging advanced technology with specialized knowledge to serve clients effectively in dynamically evolving energy landscapes.
Frequently Asked Questions
What is a Normal Course Issuer Bid?
A Normal Course Issuer Bid (NCIB) is a program that allows a company to repurchase its own shares from the market, enhancing shareholder value.
Why has CMG initiated this NCIB?
CMG has started the NCIB to balance acquisition opportunities and capitalize on its current share price, which may not reflect its true value.
How many shares can CMG buy under the NCIB?
CMG is authorized to purchase up to 4,136,475 Shares representing 5% of its outstanding shares during the NCIB period.
What is the role of the Automatic Share Purchase Plan?
The ASPP facilitates share repurchases during regulatory blackout periods, allowing for consistent buybacks according to predetermined guidelines.
How does the NCIB benefit shareholders?
The NCIB is expected to enhance shareholder value by increasing the equity interest for those who continue to hold shares, as repurchased shares are canceled.
