During the first year of its normal course issuer bid announced on December 9, 2008, the Company purchased a total of 826,500 common shares at an average price of $0.29 per share.
DEQ believes that its common shares have traded in a price range which may not fully reflect the underlying value of such shares. As a result, depending upon future price movements and other factors, DEQ ascertains that the purchase for cancellation of its common shares may be an attractive and appropriate use of corporate funds in light of potential benefits to remaining shareholders in these current market conditions.
“Now that we are generated positive operating cash flow, it is now our duty to manage this important resource strategically”, stated Earle G. Hall, President & CEO of DEQ. “With our current cash position of approximately us$ 6 million, the increasing long-term recurring revenue contracts we are securing and our stable operating costs, this normal course issuer bid is a sound business and financial option for the company to create shareholder value.”
The purchases may commence next December 21 and will terminate on December 20, 2010, or on such earlier date as DEQ will have completed its purchases or otherwise decides not to proceed with other acquisitions. The purchases will be made through the facilities of the Exchange by Canaccord Capital Corporation on behalf of the company in accordance with the Exchange requirements.
DEQ will pay the market price of common shares on the Exchange at the time of purchase and no purchases of common shares will be made other than open-market purchases. All purchased common shares will be cancelled.