VICTORIA, BRITISH COLUMBIA--(Marketwire - March 11, 2013) - Vecima Networks Inc. (TSX:VCM) ("Vecima" or "the Company"), a leading designer and manufacturer in the broadband cable and wireless network infrastructure market, announces that shareholders today authorized the Company to reduce the stated capital of its common shares by $1.00 per share. Therefore, the Board of Directors today authorized a special cash distribution, by way of a return of capital, of $1.00 per share on the Company's outstanding common shares. The special distribution is payable on March 27, 2013 to shareholders of record at the close of business on March 21, 2013.
The aggregate amount of the special distribution is expected to be approximately $22.3 million. Vecima's pro forma working capital, after the distribution of $22.3 million, is projected to be approximately $59.0 million. Vecima believes that its available financial resources following payment of the special distribution will be sufficient to fund Vecima's current capital requirements.
About Vecima Networks
Vecima Networks Inc. (TSX:VCM) designs, manufactures and sells products that enable broadband access to cable, wireless and telephony networks. Vecima's hardware products incorporate original embedded software to meet the complex requirements of next-generation, high-speed digital networks. Service providers use Vecima's solutions to deliver services to a converging worldwide broadband market, including what are commonly known as "triple play" (voice, video and data) and "quadruple play" (voice, video, data and wireless) services. Vecima's solutions allow service providers to rapidly and cost-effectively bridge the final network segment that connects the system directly to end users, commonly referred to as "the last mile", by overcoming the bottleneck resulting from insufficient carrying capacity in legacy, last mile infrastructures. Vecima's products are directed at two principal markets: Converged Wired Solutions and Broadband Wireless. The Company has also developed and continues to focus on developing products to address emerging markets such as Voice over Internet Protocol, fibre to the home and IP video. More information is available at our website at www.vecima.com.
This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words "believes", "may", "plans", "will", "anticipates", "intends", "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions. Forward-looking information in this news release include statements about: the Company's belief that its available financial resources following payment of the special distribution will be sufficient to fund Vecima's current capital requirements; and, the projected amount of Vecima's pro forma working capital after the distribution.
In connection with the forward-looking information contained in this news release, Vecima has made numerous assumptions, regarding, among other things: the present or potential value of the Company's core technologies, business operations and asset holdings. While Vecima considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause Vecima's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: unexpected capital obligations may arise that exceed Vecima's financial resources; the Company's share price may never increase and may decrease significantly; the Company's balance sheet, as well as value of its core technologies, business operations and asset holdings may be significantly weaker than currently estimated by the Company; there may be no further growth or profitability of the Company; and, there may be no further development or introduction of new products.
A more complete discussion of the risks and uncertainties facing Vecima is disclosed under the heading "Risk Factors" in the Company's Annual Information Form dated September 28, 2012, as well as the Company's continuous disclosure filings with Canadian securities regulatory authorities available at www.sedar.com. All forward-looking information herein is qualified in its entirety by this cautionary statement, and Vecima disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.