Canadian search engine Mamma.com (www.Mamma.com), announced on September 7 its plans to buy back up to 600 000 of its outstanding shares over the next year. The Montreal-based company, which has 10.5 million shares outstanding, said the normal course issuer bid will take place over a 12-month period starting on September 8.
By buying back shares, Mamma.com will reduce its equity base, spreading profits over fewer shares increasing its earnings per share, a key ratio used to help determine the company's financial health and investment rating.
David Goldman, Mamma.com's executive chairman, said that Mamma.com is committed to maximizing the return to its shareholders, and that its current financial strength will permit it to conclude mergers and acquisitions to enhance the company's profitability.
On June 30, Mamma.com had $27 million US in cash and cash equivalents. Shares of Mamma.com closed up one cent on September 7 at $5.35 US in trading on the Nasdaq market.
