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Coveo Solutions Inc. Updates on Share Buyback and Securities Purchasing

Coveo Solutions Inc., a leading name in AI-Relevance, today announced significant updates regarding their share repurchase strategies, marking a focused effort to bolster shareholder value. The company's board of directors has sanctioned the renewal of its normal course issuer bid (NCIB) for the upcoming year.

What is the Normal Course Issuer Bid?

A normal course issuer bid allows a company to purchase its own shares from the market to reduce the number of outstanding shares. This is seen as an effective method to enhance shareholder value by redistributing the equity among the remaining shareholders. The NCIB authorized by Coveo enables the company to buy back up to 5,101,789 subordinate voting shares over a twelve-month period, beginning from July 17, 2026, and concluding no later than July 16, 2027. This number translates to approximately 10% of the public float, according to data recorded as of July 6, 2026.

The renewal comes on the heels of the previous cycle that allowed for the purchase of 5,423,244 shares, with 3,912,990 shares successfully repurchased at an average cost of C$6.78 per share. These repurchases were executed via the Toronto Stock Exchange (TSX) and other Canadian trading systems, following the stipulated regulations.

Automatic Securities Purchase Plan Renewal

Alongside the NCIB, Coveo has also renewed its Automatic Securities Purchase Plan (ASPP). This plan enables the company to continue purchasing its shares during the periods when they would normally not be engaging in market transactions due to regulatory restrictions or internal policies. This plan is set to minimize gaps in share purchases, maximizing opportunities to buy shares at varying market conditions while adhering to legal guidelines.

Under the ASPP, prior to entering any black-out period, Coveo can instruct their designated broker to acquire shares in accordance with pre-established criteria. The broker will have the discretion to carry out these transactions, contributing to a more controlled repurchase mechanism that aligns with the company's financial strategies.

Rationale Behind the Renewals

Coveo's management explains that the decision to renew the NCIB is rooted in providing a practical route for capital allocation, aiming at long-term shareholder value creation. The company believes that the stock price may, at times, not reflect the true value of its shares. By repurchasing shares for cancellation, the firm not only increases the relative equity stakes for existing shareholders but also offers liquidity for those looking to sell their shares in the market.

Management outlined that the success and execution of the NCIB are contingent upon numerous factors. These include, but aren’t limited to, Coveo's capital structure, liquidity status, operational efficacy, and market conditions surrounding the share price on the TSX. This foresight is particularly relevant as they navigate through ever-changing economic landscapes.

Looking Ahead

As Coveo embarks on this renewed initiative, market watchers and investors are encouraged to stay informed about the ongoing strategies and results of the NCIB and ASPP, which not only reflect the company’s confidence in its market position but also underline its commitment to prioritizing shareholder interests.

For further updates and deeper insights into Coveo, stakeholders can connect through their online platforms, including LinkedIn and YouTube, or check the Coveo blog for detailed discussions on their initiatives and developments.

In conclusion, Coveo’s refreshed NCIB and ASPP signify a proactive approach to managing share capital and enhancing overall corporate governance, aimed at fostering a positive relationship with its investors and ensuring sustainable growth in the ever-evolving tech landscape.