MARKHAM, ONTARIO, June 21, 2022 – Sangoma Technologies Corporation (TSX: STC; Nasdaq: SANG) (“Sangoma” or the “Company”), a trusted leader in delivering cloud-based Communications as a Service solutions for companies of all sizes, announced today that the Toronto Stock Exchange (the “TSX”) has accepted a notice filed by the Company of its intention to make a Normal Course Issuer Bid (the “NCIB”) with respect to its common shares (the “Shares”).
The notice provides that Sangoma may, during the 12-month period commencing June 23, 2022 and ending no later than June 22, 2023, purchase up to 1,071,981 Shares, representing 5% of the total number of 21,439,632 Shares outstanding, through the facilities of the TSX, the NASDAQ Global Select Market or alternative Canadian trading systems. Shares will be acquired under the NCIB at the market price and will be purchased for cancellation.
The average daily trading volume of the Shares on the TSX (the “ADTV”) for the most recently completed six calendar months is 27,047. Pursuant to TSX policies, daily purchases under the NCIB will be limited to 6,761 Shares, representing 25% of the ADTV, subject to certain prescribed exceptions.
Sangoma remains committed to accumulating balance sheet strength to help fund future acquisitions, to continuing the long-term profitable growth of our business, and to efficient capital allocation. The Company, and its board of directors, are of the view that the current market price of its Shares does not reflect the underlying value of its business and the NCIB represents an appropriate and desirable use of the Company’s funds. Sangoma believes that it is in its best interest to proceed with this NCIB, while maintaining sufficient financial flexibility to execute on the Company’s future strategic direction and capital allocation priorities. Decisions regarding the amount and timing of any actions in connection with the NCIB will be subject to various factors including the Company’s valuation, capital and liquidity positions and potential acquisition opportunities.
Sangoma has entered into an automatic share purchase plan with a designated broker to allow for the purchase of Shares under the NCIB at times when the Company would ordinarily not be permitted to purchase Shares due to self-imposed blackout periods, insider trading rules or otherwise.