Board Declares Dividend of 1.5 Cents Per Share
Toronto, Ontario– May 1, 2012 – Retained executive search firm The Caldwell Partners International Inc. (TSX: CWL) announced that at a meeting held today, its shareholders approved a resolution to reduce the Stated Capital of its Common Shares by 75%, adding approximately $12 million to Contributed Surplus. Total Shareholders’ Equity as at February 29, 2012 remains unchanged at approximately $9.7 million.
With this restatement of capital approved, the Board of Directors is pleased to announce the payment of a dividend of 1.5 cents per Common Share payable June 15, 2012 to shareholders of record on May 10, 2012. The company also indicated that it is intending to repurchase Common shares on the Toronto Stock Exchange, pursuant to a Normal Course Issuer Bid notice to be filed with the TSX.
“Throughout our strategic growth plan, we have been focussed on increasing revenues and improving profitability, always with a view to creating value for shareholders. With the restatement of capital approved, we are now able to tangibly enhance that value through the payment of a dividend which, based on today’s market price, provides our shareholders with an annualized return of approximately 9%.” said G. Edmund King, Chairman. “We would like to thank all shareholders who exercised their franchise regarding this resolution. With 14,800,453 or 87% of all outstanding shares voted, we have now heard from the vast majority of shareholders and their wishes regarding this very important matter. An overwhelming 99.9% of shares represented voted in favour of the restatement of capital.
Mr. King continued, “Our Board and management agree that the current price at which Caldwell Partners’ shares are trading on the Toronto Stock Exchange does not adequately reflect the value of our company and the outlook for our business. Under the right circumstances, we view the potential to repurchase shares as being a good use of a portion of the unencumbered cash that we have been maintaining to carry out our strategic growth plans.”
About Caldwell Partners
Caldwell Partners is one of North America’s premier providers of executive search and has been for over 40 years. As one of the region’s most trusted advisors in executive search, the firm has a sterling reputation built on successful searches for boards, chief and senior executives, and selected functional experts.
With offices in Vancouver, San Francisco, Los Angeles, Dallas, Calgary, Atlanta, Toronto, Stamford, New York City, and a strategic presence in London and Hong Kong, the firm takes pride in delivering an unmatched level of service and expertise to its clients.
Forward-looking statements in this document are based on current expectations that are subject to significant risks and uncertainties. Actual results might differ materially due to various factors such as the competitive nature of the executive search industry, the ability of the company to execute its growth strategies, the performance of the Canadian domestic and international economies, and the company’s ability to retain key personnel. The Caldwell Partners assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.
For further information, please contact:
Karen Richards, CA Chief Financial Officer
The Caldwell Partners International