#Canada #Toronto #share repurchase #Zoomd Technologies #Normal Course Issuer Bid

Zoomd Technologies Launches Normal Course Issuer Bid

Zoomd Technologies Ltd., a prominent player in the online advertising management sector, has announced its intention to commence a Normal Course Issuer Bid (NCIB) effective May 29, 2026. This strategic move will allow the company to repurchase up to 7,987,767 common shares, representing approximately 10% of its public float or about 7.9% of total outstanding shares. The initiative aims to foster an orderly market and align with the best interests of both Zoomd and its shareholders.

As the company rolls out this initiative, it has also established an Automatic Share Purchase Plan (ASPP) in partnership with a broker to facilitate these repurchases. This will ensure that shares are bought back in accordance with regulations, even during periods when the company is restricted from trading due to insider information or blackout periods.

Strategic Rationale Behind the NCIB

The rationale for launching the NCIB stems from Zoomd's confidence that its shares are currently undervalued by the market. The company asserts that its financial health, characterized by a robust balance sheet, significant cash reserves, and consistent positive cash flow, supports this buyback plan. By repurchasing shares, Zoomd seeks to underline its commitment to maximizing shareholder value and optimizing its capital allocation strategy.

Management believes this strategy can be particularly advantageous if the trading price of Zoomd's shares fails to signify the company's underlying business potential and financial viability. The share repurchase can serve as a strategic investment opportunity that allows the company to utilize its capital effectively in a marketplace where it sees potential growth.

Proceeding with the Bid

Upon acceptance of its bid notice by the TSX Venture Exchange (TSXV), the NCIB is set to unfold over the course of 12 months. Zoomd will conduct these treasury purchases through its designated broker, ATB Capital Markets Corp. All repurchased shares will be cancelled, thereby reducing the overall share count and ideally enhancing the value of remaining shares for investors.

Pricing for purchases will be determined based on the prevailing market rates at the time of the transactions, remaining compliant with TSXV pricing regulations. Moreover, the company has clarified that all repurchases will be funded through available cash, working capital, or revenue, demonstrating a firm commitment to financial prudence and strategic investment.

Looking Ahead

As a forward-looking statement, management acknowledges that various risks and uncertainties surround the execution of the NCIB, such as fluctuations in share price and market conditions affecting the timing or extent of share purchases. Nonetheless, the company is resolute in its emphasis on disciplined and opportunistic stock repurchases, and it remains focused on cultivating long-term value for its shareholders.

In addition to its NCIB announcement, Zoomd Technologies continues to evolve in the digital marketing ecosystem since its establishment in 2012. The company specializes in mobile app user acquisition and streamlining campaign management for advertisers by integrating various media sources onto a single platform. This innovative approach enables advertisers to optimize resource allocation and maximize advertising ROI.

In conclusion, the initiation of the Normal Course Issuer Bid marks a significant chapter for Zoomd Technologies as it executes its strategic plan to further enhance shareholder returns while positioning itself for continued growth in the dynamic online advertising landscape. Investors should stay tuned for further developments as the buyback program unfolds over the coming months.