Laval, Quebec, December 1, 2010– Savaria Corporation (“Savaria”) (TSX: SIS), the second largest company in the accessibility equipment industry in North America today announced that it has received Toronto Stock Exchange ("TSX") approval to a Notice of Intention to implement a normal course issuer bid. According to the notice, Savaria intends to purchase for cancellation, in accordance with the requirements of the TSX, up to 1,108,578 common shares, representing 5 % of the 22,171,564 common shares that are issued and outstanding as of November 22, 2010.
The average daily trading volume (“ADTV”) of Savaria’s common shares over the last six completed calendar months was 2,325. According to the TSX requirements, Savaria is entitled, on any trading day, to purchase up to 1,000 common shares. Once a week, in excess of the daily 1,000 repurchased limit, Savaria may also purchase a block of shares not owned by an insider (i) having a purchase price of $200,000 or more, (ii) of at least 5,000 shares having a purchase price of at least $50,000, or (iii) of at least 20 board lots of shares which total 150% or more of the ADTV.
The normal course issuer bid will begin on December 3, 2010, and will run until the earlier of the date on which purchases under the bid have been completed and December 2, 2011. These purchases are to be made through the facilities of the TSX in accordance with its requirements on normal course issuer bids. The price, which Savaria will pay for any common shares, will be the market price at the time of acquisition plus brokerage fees.
An independent valuation of the fair market value of the common shares of Savaria (“Valuation”) has been prepared by the firm Burkman Capital Corporation (“BCC“), as of June 25, 2009, in the context of an Offer to purchase for cash. Subject to the assumptions, limitations, restrictions and the scope of BCC’s work as set out in the Valuation, BCC concluded that in its opinion, the fair market value of 100% of the issued and outstanding common shares as at the Valuation date is in the range of $21,200,000 to $24,500,000 or $0.78 to $0.91 per common share. A copy of the Valuation may be obtained on request from Mrs. Helene Bernier, VP Finance of Savaria, 2724 Etienne-Lenoir Street, Laval, Quebec, H7R 0A3, Telephone: 1-800-931-5655. Also, a copy of the Valuation is being filed on SEDAR under Savaria’s profile.
Savaria has purchased 289,655 of its common shares at a weighted average price of $1.17 within the last twelve months pursuant to a normal course issuer bid which began on December 3, 2009 and will terminate on December 2, 2010.
Savaria believes that the purchase of its shares makes appropriate use of its available cash, and therefore, that the issuer bid is in the best interests of Savaria and its shareholders.
Savaria Corporation (savaria.com) is Canada’s leader and the second largest North American company in the accessibility industry focused on meeting the needs of people with mobility challenges. Savaria designs, manufactures and distributes primarily elevators for residential and commercial use, as well as stairlifts and vertical and inclined platform lifts. In addition, it converts and adapts wheelchair accessible automotive vehicles and also offers scooters and motorized wheelchairs. The diversity of its product line, one of the world’s most comprehensive in the industry, enables the Corporation to stand out by offering an integrated and customized solution for its customers’ mobility needs. Its operations in China have substantially grown since 2006 and the collaboration with Savaria’s other Canadian facilities increases its competitive edge on the market. The Corporation records approximately 50% of its sales outside Canada, primarily in the United States. It has a sales network of some 600 retailers in North America and employs 455 people at its head office in Laval and at its plants in Ville Saint-Laurent (Quebec), Brampton, London and Oakville (Ontario), Calgary (Alberta) and Huizhou (China).
FORWARD LOOKING STATEMENTS
Certain statements may constitute forward-looking statements. Such forward-looking statements involve risks, uncertainties and other factors, which may cause actual results, performance or achievements of the Corporation to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.