TORONTO, May 7 /CNW/ - TeraGo Inc. (the "Company") (TSX: TGO) today announced that the Toronto Stock Exchange ("TSX") has accepted its notice of intention to conduct a normal course issuer bid for the purchase of up to 458,000 common shares, representing approximately 10 per cent of the public float of common shares as of April 30, 2008. As at April 30, 2008, the Company had 7,558,466 issued and outstanding common shares.
Purchases under the bid will be made through the facilities of the TSX in the period from May 9, 2008 to May 8, 2009 (or such earlier date as the Company may complete its purchases) at the prevailing market price. Other than block purchases allowable under TSX rules, purchases are subject to a daily purchase restriction equal to 25 per cent of the average daily trading volume of the common shares over the preceding six months, or a maximum of 2,391 common shares per trading day. Any common shares acquired by the Company will be cancelled.
The Company also intends on establishing a pre-defined plan with its designated broker to allow for the repurchase of common shares at times when the Company ordinarily would not be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise.
The Company's Board of Directors believes that from time to time, the market prices of its common shares may not fully reflect the value of its business and its future business prospects and, accordingly, may represent an attractive investment and a desirable use of its available funds.
About TeraGo Networks
TeraGo Networks Inc. has been providing businesses in Canada with carrier-grade wireless broadband and data communications services since 2001. The national broadband service provider owns and manages its wireless IP network in 40 major markets across Canada, serving more than 4,000 customer locations. TeraGo Networks is a wholly owned subsidiary of TeraGo Inc. (TSX: TGO). More information about TeraGo is available at www.terago.ca.
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