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Big news for investors following Computer Modelling Group Ltd. (CMG)! The company recently announced a significant amendment to its Normal Course Issuer Bid (NCIB), effective February 26, 2026. This move, accepted by the Toronto Stock Exchange (TSX), signals CMG’s continued commitment to enhancing shareholder value.
For those unfamiliar, an NCIB allows a company to repurchase its own shares from the open market. This can be a strategic way to reduce the number of outstanding shares, which often increases the earnings per share and can signal to the market that the company believes its shares are undervalued.
What’s Changing?
The key amendment is a substantial increase in the maximum number of common shares CMG is authorized to repurchase. Initially, the company could buy back up to 4,136,475 shares, representing 5% of its outstanding shares as of November 3, 2025. With this amendment, that number jumps to 4,791,369 shares, which now represents 10% of the company’s “public float” as of the same date.
The term “public float” refers to the shares available for trading in the open market, excluding shares held by insiders (like directors, senior officers, and major shareholders) and restricted shares. This change, in line with TSX rules, allows CMG to be even more active in its share repurchase program.
NCIB Details at a Glance:
- Start Date: Purchases under the NCIB began on November 14, 2025.
- End Date: The program will conclude no later than November 13, 2026.
- Automatic Plan: CMG continues to utilize an automatic share purchase plan (ASPP) with its designated broker to facilitate these repurchases.
- Current Progress: As of February 20, 2026, CMG had already purchased 3,031,900 shares under the NCIB.
- Daily Limits: To ensure orderly market purchases, the number of shares bought per day will not exceed 53,297 shares, which is 25% of the average daily trading volume over the six months ending October 31, 2025 (213,191 shares). Exceptions apply for permitted block purchases.
Why the Amendment? CMG’s Rationale
CMG believes that its share price may not always fully reflect the underlying value of its robust business. By increasing the number of shares eligible for purchase, the Board of Directors aims to take advantage of these market conditions. They see share repurchases as a desirable use of corporate funds that is in the best interests of the company and its shareholders.
Furthermore, the company highlights that these purchases are expected to benefit all individuals who continue to hold CMG shares. When repurchased shares are cancelled, it effectively increases the equity interest of remaining shareholders in the company, as their percentage ownership of the outstanding shares rises.
All share repurchases under the NCIB will be conducted through the TSX and other designated Canadian trading systems at prevailing market prices, or by other means permitted by regulators. Importantly, all shares bought back under this program will be cancelled.
About CMG
CMG (TSX:CMG) is a global software and consulting company that merges scientific expertise and technology with deep industry knowledge. They specialize in solving complex subsurface and surface challenges for the new energy industry worldwide. Headquartered in Calgary, AB, CMG maintains a global presence with offices across multiple continents. For more details, visit www.cmgl.ca.
Source: Original Article
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