Clarke announces issuer bid for up to C$1.26 million 6% convertibles

By Angela McDaniels

Tacoma, Wash., Dec. 12 - Clarke Inc. will repurchase up to C$1,264,000 principal amount of its 6% convertible subordinated debentures due Dec. 31, 2012 through a normal course issuer bid, according to a company news release.

The amount represents about 10% of the public float issued and outstanding as of Dec. 2, which was C$12,643,400. The principal amount of convertibles issued and outstanding as of that date was C$18,275,500.

The issuer bid will begin Dec. 14 and end Dec. 13, 2012.

From June 1 to Nov. 30, the average daily trading volume of convertibles was C$10,413 principal amount. Each day, Clarke may purchase up to 25% of the average daily trading volume, which is C$2,603 principal amount, subject to a weekly "block purchase" exemption.

Any convertibles purchased by Clarke under the bid will be canceled.

In connection with the program, the company established an automatic securities purchase plan for the convertibles. The plan was established to provide standard instructions about how the convertibles will be repurchased under the issuer bid. Accordingly, Clarke can make repurchases under the plan on any trading day during the issuer bid including during self-imposed trading blackout periods.

The plan will terminate with the issuer bid.

The company said its directors and senior management believe that the purchase of the convertibles from time to time at the prevailing market price would be a worthwhile use of available funds and in the best interests of the company and its shareholders.

As of Dec. 2, Clarke had not acquired any convertibles under the normal course issuer bid that expires on Dec. 13.

Clarke is based in Halifax, N.S. It is an investment company with interests in freight transportation, shipping, real estate and information technology.

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