Company provides update on Normal Course Issuer Bid and announces plan to initiate purchases on NASDAQ exchangeVancouver, BC, Canada — August 21, 2014 —
CounterPath Corporation (“CounterPath” or the “Company”) (NASDAQ: CPAH) (TSX: CCV), a leading developer of award-winning desktop, tablet and mobile VoIP software products and solutions, today announced an update on the purchases of its common shares pursuant to the normal course issuer bid (“NCIB”) previously announced on March 17, 2014 and plans to initiate purchases of its common shares using the facilities of the NASDAQ.
As of August 19, 2014, CounterPath has purchased for cancellation a total of: (i) 78,900 common shares at an average purchase price of CDN$1.31 per common share using the facilities of the Toronto Stock Exchange ("TSX") under its current NCIB, and (ii) and a total of 361,858 common shares at an average purchase price of CDN$1.67 per common share using the facilities of the TSX under all NCIBs. The purchase of the 78,900 common shares was within the maximum daily limit allowed under the automatic share purchase plan (the "Plan") which was approved by the TSX and initiated on March 19, 2014. The Company plans to continue purchasing its common shares under the Plan using the facilities of the TSX.
Subject to compliance with Rule 10b-18 and other rules of the Securities Exchange Act of 1934, the Company also plans to start purchasing its common shares pursuant to its current NCIB using the facilities of the NASDAQ, permitting the Company to make larger daily purchases than it is currently making using only the facilities of the TSX. Under the current NCIB, CounterPath may acquire up to 2,458,153 common shares, representing approximately ten percent (10%) of the public float of the Company as of March 12, 2014, during the 12-month period starting March 19, 2014.
"Given the size of our market, our existing customer base, the strength of our sales funnel and our new strategic relationships, we believe our stock currently trades in a range that does not reflect the true value of our company," said Donovan Jones, President and CEO at CounterPath. "We plan to start purchasing our common shares using the facilities of the NASDAQ, while continuing to purchase common shares on the TSX, and believe the initiative will create long-term shareholder value."
CounterPath's SIP-based VoIP softphones are changing the face of telecommunications. An industry and user favorite, Bria softphones for desktop and mobile devices, together with the Company's server applications and Fixed Mobile Convergence (FMC) solutions, enable service providers, OEMs and enterprises large and small around the globe to offer a seamless and unified communications experience across both fixed and mobile networks. Standards-based, cost-effective and reliable, CounterPath’s award-winning solutions power the voice and video calling, messaging, and presence offerings of customers such as Alcatel-Lucent, AT&T, Verizon, BT, Mobilkom Austria, Rogers, Avaya, BroadSoft, Cisco Systems, GENBAND, Metaswitch Networks, Mitel, NTT and NEC.
For more information about CounterPath’s Bria softphone applications and provisioning solutions, visit: www.counterpath.com/products.
Chief Financial Officer, CounterPath
This news release contains "forward-looking statements". Statements in this news release which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, outlook, expectations or intentions regarding the future such as the following: (1) given the size of our market, our existing customer base, the strength of our sales funnel and our new strategic relationships, we believe our stock currently trades in a range that does not reflect the true value of our company; and (2) we plan to start purchasing our common shares using the facilities of the NASDAQ, while continuing to purchase common shares on the TSX, and believe the initiative will create long-term shareholder value. These statements and information are based on management's beliefs, estimates and opinions on the date that the statements are made and reflect the Company’s current expectations.
It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others: (1) the variability in CounterPath’s sales from reporting period to reporting period due to extended sales cycles as a result of selling CounterPath's products through channel partners or the length of time of deployment of CounterPath's products by our customers (2) the Company’s ability to manage its operating expenses, which may adversely affect its financial condition, (3) a decline in the Company’s stock price or insufficient investor interest in the Company’s securities which may impact on the Company’s ability to raise additional financing as required, (4) the Company's ability to remain competitive as other better financed competitors develop and release competitive products, (5) the impact of intellectual property litigation that could materially and adversely affect our business, (6) the success by the Company of the sales of its current and new products, (7) the impact of technology changes on the Company's products and on our industry, (8) the failure to develop new and innovative products using the Company’s technologies, (9) the potential dilution to shareholders or overhang on the Company's share price of its outstanding stock options and warrants. Readers should also refer to the risk disclosures outlined in the Company’s quarterly reports on Form 10-Q or Form 10-Q/A, or in the annual reports on Form 10-K or Form 10-K/A, and the Company’s other disclosure documents filed from time-to-time with the Securities and Exchange Commission at www.sec.gov and the Company's interim and annual filings and other disclosure documents filed from time-to-time on SEDAR at www.sedar.com.
The forward-looking statements contained in this new release represent the Company's expectations as of the date hereof, and are subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.