Computer Modelling Group Ltd. (TSX: CMG) announced on September 25, 2026, that it has completed its substantial issuer bid, repurchasing and cancelling 4,444,444 common shares at C$4.50 per share for an aggregate purchase price of approximately C$19,999,998. The buyback represents approximately 5.7% of CMG's total issued and outstanding shares as of September 21, 2026, leaving the company with approximately 73.6 million shares outstanding. Investors may be watching this development as a signal of management's confidence in the company's underlying value and capital allocation strategy.

Key Points

  • Computer Modelling Group Ltd. (TSX: CMG) is a Calgary-based global energy software and consulting company
  • CMG completed its substantial issuer bid, purchasing 4,444,444 shares at C$4.50 per share for cancellation
  • The total repurchase cost was approximately C$19,999,998, with settlement expected on or about September 30, 2026
  • Investors should note the Canadian income tax implications, including an eligible dividend designation for participating shareholders

CMG's Substantial Issuer Bid Final Proration and Tender Results

The announcement states that a total of 4,657,844 shares were tendered via auction and purchase price tenders, of which 3,933,679 were taken up. Because the bid was oversubscribed, shareholders who tendered through auction or purchase price tenders had approximately 84% of their successfully tendered shares purchased, excluding odd-lot tenders, which were not subject to proration. An additional 8,966,715 shares were tendered through proportionate tenders, of which 510,765 shares were taken up and purchased. Unpurchased and invalidly tendered shares will be returned to shareholders promptly by depositary Olympia Trust Company.

Settlement Timeline and Share Count Following the Buyback

Payment and settlement for the purchased shares is expected to be effected by Olympia Trust Company on or about September 30, 2026, in accordance with the terms of the substantial issuer bid and applicable law. Following the completion of the repurchase, CMG will have approximately 73.6 million shares issued and outstanding. The bid was originally structured to repurchase shares for an aggregate purchase price not to exceed C$20 million, and the final consideration of approximately C$19,999,998 came effectively in line with that ceiling.

Income Tax Implications for CMG Shareholders Who Tendered Shares

CMG estimates the paid-up capital per share at approximately C$1.025 for purposes of the Income Tax Act (Canada). Since the C$4.50 purchase price exceeds this amount, participating shareholders are deemed to have received a taxable dividend equal to the difference. CMG has designated this deemed dividend as an "eligible dividend" under the Income Tax Act (Canada) and applicable provincial and territorial legislation. The company notes the specified amount under subsection 191(4) is C$3.89, reflecting the TSX closing price on September 21, 2026. The release advises shareholders to consult their own tax advisors regarding the consequences of their participation.