Thursday, 13 March 2008

Brainhunter Poised To Begin Buying Shares

Brainhunter (TSX: BH)

Basic Shares Issued: 43.958 million

The company announced today that pending TSX approval, it will make a Normal Course Issuer Bid for open market purchases of its shares.

BH would be allowed to purchase up to 2.5 million shares, which represents approximately 10% of the public float. Interesting to note is that with just under 44 million shares issued, the insider group controls about 19 million shares.

The purchases are expected to start towards the end of this month and the NCIB would last until the end of March 2009.

To read the news release click here.

The management comment in the news release was as such, "Brainhunter believes that its Common Shares have been trading in a price range which does not adequately reflect their value in relation to the Corporation’s business and its future business prospects and accordingly, may represent an attractive investment and a desirable use of its available funds."

Today's news comes on the heels of last week's announcement that Brainhunter had received $7.5 million of a $10 million technology licensing deal with Workopolis. BH expects to receive another $2 million in April and the remaining $500 thousand over the next number of months.

Put these developments in context of a company that generated $225 million in revenues in Fiscal 2007 (Sept. 30) and $7.8 million in EBITDA or $0.17/share, is trading in the $0.45 range and has a market capitalization of just under $20 million.