BlackBerry prepared to buy back up to 2.5 per cent of its public stock

BUSINESS

BlackBerry prepared to buy back up to 2.5 per cent of its public stock

The Canadian Press Published Thursday, June 25, 2015 8:06AM EDT

Chief executive John Chen answers questions following the BlackBerry Ltd. annual meeting in Waterloo, Ont., on Tuesday, June 23, 2015. (Frank Gunn/THE CANADIAN PRESS)

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WATERLOO, Ont. - BlackBerry Ltd. (NASDAQ:BBRY)(TSX:BB) says it's prepared to buy back and cancel up to 12 million of its common shares over the next year.

Based on the most recent closing price for BlackBerry shares, the buyback program would cost the company about $131.6 million or US$105.9 million.

However, the amount the company actually pays will depend on the how many shares it buys and the prices paid on the Toronto or Nasdaq stock markets.

BlackBerry says the share buyback program would begin on June 29 and run for 12 months. As of June 22, the company had nearly 529.5 million shares outstanding and the buyback would represent 2.5 per cent of the public float.

Its shares briefly spiked to a 52-week high of C$15.10 in January in Toronto but are currently near their 2015 lows. They closed Wednesday at $10.97 on the Toronto Stock Exchange.

On Tuesday, BlackBerry posted an adjusted loss of US$28 million or five cents per share for its fiscal first quarter, worse than analyst expectations of a three-cent per share loss, according to a survey by Thomson Reuters.