ZTEST Electronics Inc. Plans Normal Course Issuer Bid to Enhance Shareholder Value

Overview of the Normal Course Issuer Bid

ZTEST Electronics Inc. has announced its plan to initiate a normal course issuer bid (NCIB) aimed at repurchasing shares from the market. This program, which begins on April 24, 2026, and runs for one year, will enable the company to acquire up to 3,129,311 of its common shares, approximating 10% of its public float.

Execution through CSE

The share buybacks will occur on the Canadian Securities Exchange (CSE) and will be conducted in accordance with its policies as well as relevant Canadian securities regulations. Shares purchased under this program will be cancelled upon acquisition, effectively reducing the number of shares outstanding.

Rationale Behind the Buyback

ZTEST Electronics has expressed that the current market price of its shares does not fully reflect the underlying value of the company and its prospects. By implementing the NCIB, ZTEST aims to enhance the long-term value for its shareholders, considering it a judicious use of the company’s financial resources.

Brokerage and Financial Considerations

Integral Wealth Securities Ltd. has been appointed as the broker to facilitate the NCIB transactions on behalf of ZTEST. The estimated purchases will be funded using cash reserves, highlighting the company's financial stability.

Previous Buyback Activity

In a similar attempt, ZTEST repurchased 428,500 common shares at an average price of approximately $0.227 per share under a previously existing bid that concluded on March 31, 2026.

Company Background

ZTEST Electronics Inc. operates through its subsidiary, Permatech Electronics Corporation, offering a range of Electronic Manufacturing Services (EMS). The company specializes in printed circuit board assembly, materials management, and testing services, serving sectors including medical, telecommunications, and consumer electronics from its ISO 9001:2015 certified facility in North York, Ontario.

Potential Risks

ZTEST notes that while it is committed to the NCIB, the timing and extent of share repurchases will depend on prevailing market conditions and other factors. Investors should also be aware of the risks associated with forward-looking statements, as actual results may vary from projected outcomes.

Key Takeaways

ZTEST Electronics Inc. plans to initiate a normal course issuer bid starting April 24, 2026, allowing the repurchase of up to 3.1 million shares.

The buyback program aims to enhance shareholder value in light of current market prices.

Integral Wealth Securities Ltd. will act as the broker for the NCIB transactions.

Previous buybacks included the repurchase of 428,500 shares at an average price of $0.227 per share.

The NCIB will be funded using cash on hand, emphasizing the company's financial health.