TORONTO ‚Äì May 26, 2009 – Tucows Inc. (NYSE Amex:TCX, TSX:TC) a global provider of domain names, email and other Internet services, announced today that it is commencing a modified ‚ÄúDutch auction‚Äù tender offer to repurchase up to 4,000,000 shares of its common stock, representing approximately 5.8% of the Tucows‚Äô outstanding shares. The closing price of Tucows‚Äô common stock on the NYSE Amex on May 22, 2009 was $0.38 per share.
Eight-Year High in New Registrations Contributes to Strong Growth in Revenue and Profitability
TORONTO, May 13, 2009 – Tucows Inc., (AMEX:TCX, TSX:TC) a global provider of domain names, email and other Internet services, today reported its financial results for the first quarter of 2009 ended March 31, 2009. All figures are in U.S. dollars.
“During the first quarter of 2009, we saw continued strength in domain registrations through our OpenSRS wholesale services business, marked by the highest number of new registrations since the second quarter of 2000 and strong year-over-year growth in renewal transactions,” said Elliot Noss, President and CEO of Tucows. “In our YummyNames branded domain portfolio business, we completed a $1 million bulk domain name sale and executed an arrangement with the buyer committing them to ongoing domain purchases over the next 12 to 18 months. The contributions from these businesses in the first quarter resulted in strong revenue growth, profitability and solid cash flow from operations.”
TORONTO, May 13 – Tucows Inc. (NYSE AMEX:TCX, TSX:TC) a global provider of domain names, email and other Internet services, announced today that it intends to commence a second modified “Dutch auction” tender offer to repurchase up to 4,000,000 shares of its common stock, representing approximately 5.8% of the Tucows’ outstanding shares. The tender offer is expected to commence on Tuesday, May 26, 2009 and to expire, unless extended, at 5:00 P.M., New York City Time, on Tuesday, June 23, 2009.
Under the tender offer, shareholders will have the opportunity to tender some or all of their shares at a price within an expected range of $0.36 to $0.45 per share, which price range may be modified by Tucows prior to the commencement of the offer. Based on the number of shares tendered and the prices specified by the tendering shareholders, Tucows will determine the lowest per share price within the range that will enable it to buy 4,000,000 shares, or such lesser number of shares that are properly tendered. If shareholders of more than 4,000,000 shares properly tender their shares at or below the determined price per share, Tucows will purchase shares tendered by such shareholders, at the determined price per share, on a pro rata basis. Additionally, if more than 4,000,000 shares are properly tendered, the number of shares to be repurchased by Tucows pursuant to the tender offer may, at the discretion of Tucows, be increased by up to 2% of Tucows’ outstanding shares, or approximately 1,378,000 shares, without amending or extending the tender offer.
Shareholders whose shares are purchased in the offer will be paid the determined purchase price per share net in cash, without interest, after the expiration of the offer period. The offer is not contingent upon any minimum number of shares being tendered. The offer is subject to a number of other terms and conditions specified in the offer to purchase that is being distributed to shareholders.
The information agent for the offer will be StockTrans, Inc. None of Tucows, its board of directors or the information agent is or will be making any recommendation to stockholders as to whether to tender or refrain from tendering their shares into the tender offer. Shareholders must decide how many shares they will tender, if any, and the price within the stated range at which they will offer their shares for purchase by Tucows.
This press release is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any shares of Tucows’ common stock. The offer will be made solely by the offer to purchase and the related letter of transmittal.
Stockholders and investors should read carefully the offer to purchase and related materials when they are available because they contain important information.
Stockholders and investors may obtain a free copy (when available) of the offer to purchase and other documents that will be filed by Tucows with the SEC at the SEC’s web site (www.sec.gov) or from StockTrans, Inc., the information agent for the tender offer, by directing such request to: StockTrans, Inc., Attn: Re-Organization Dept., 44 West Lancaster Avenue, Ardmore, PA 19003, telephone (800) 733-1121. Stockholders are urged to carefully read these materials prior to making any decision with respect to the offer.
Tucows is a global Internet services company. OpenSRS manages over 8 million domain names and millions of email boxes through a reseller network of over 9,000 web hosts and ISPs. Hover is the easiest way for individuals and small businesses to manage their domain names and email addresses. YummyNames owns premium domain names that generate revenue through advertising or resale. Butterscotch.com is an online video network building on the foundation of Tucows.com. More information can be found at http://tucowsinc.com.
This news release contains, in addition to historical information, forward-looking statements related to such matters as our business, including statements regarding the expected time of commencement of the tender offer and the planned source of funds to purchase shares tendered in the tender offer. Such statements are based on management’s current expectations and are subject to a number of uncertainties and risks, which could cause actual results to differ materially from those described in the forward-looking statements. Information about potential factors that could affect Tucows’ business, results of operations and financial condition is included in the Risk Factors sections of Tucows’ filings with the Securities and Exchange Commission. All forward-looking statements included in this document are based on information available to Tucows as of the date of this document, and Tucows assumes no obligation to update such forward-looking statements.
TUCOWS is a registered trademark of Tucows Inc. or its subsidiaries. All other trademarks and service marks are the properties of their respective owners.
For further information: Lawrence Chamberlain, The Equicom Group for Tucows Inc., (416) 815-0700 ext. 257, firstname.lastname@example.org
TORONTO, May 13 – Tucows Inc. (AMEX:TCX, TSX:TC), a global provider of domain names, email and other Internet services, today announced that Rawleigh H. Ralls has been appointed to the Board of Directors of the Company.
“We are pleased to welcome Rawleigh to the Tucows Board,” said Elliot Noss, President and CEO of Tucows. “Mr. Ralls brings a wealth of industry experience gained through his leadership of Netidentity.com, as well as the perspective gained through two decades of investing and portfolio management experience. I look forward to his contribution to the Board as we focus on growing the Company and realizing value for our shareholders.”