Subsequent to December 31, 2012, 56,000 stock options were exercised for cash proceeds of $487,000.
On May 23, 2012, the Board of Directors considered the merits of renewing the Company's shareholder rights plan on or before the third-year anniversary of shareholder approval of the plan and determined that it was in the best interest of the Company to continue to have a shareholder rights plan in place. Upon careful review, the Board of Directors agreed to approve an amended and restated rights plan (the "Amended and Restated Rights Plan") between the Company and Valiant Trust Company, which is similar in all respects to the existing shareholder rights plan, with the exception of certain minor amendments. The Amended and Restated Rights Plan was approved by the Company's shareholders on July 12, 2012.
(c) COMMON SHARES BUY-BACK:
On April 6, 2011, the Company announced a Normal Course Issuer Bid ("NCIB") commencing on April 7, 2011 to purchase for cancellation up to 1,636,000 of its Common Shares. This NCIB ended on April 6, 2012 and a total of 33,000 Common Shares were purchased at market price for a total cost of $438,000 during the year ended March 31, 2012.
On April 16, 2012, the Company announced a NCIB commencing on April 18, 2012 to purchase for cancellation up to 3,416,000 of its Common Shares. During the nine months ended December 31, 2012, a total of 91,000 Common Shares were purchased at market price for a total cost of $1,551,000.
(d) STOCK-BASED COMPENSATION PLAN:
The Company adopted a rolling stock option plan as of July 13, 2005, which was reaffirmed by the Company's shareholders on July 7, 2011, which allows it to grant options to acquire Common Shares of up to 10% of the outstanding Common Shares at the date of grant. Based upon this calculation, at December 31, 2012, the Company could grant up to 3,781,000 stock options. Pursuant to the stock option plan, the maximum term of an option granted cannot exceed five years from the date of grant. The outstanding stock options vest as to 50% after the first year anniversary, from date of grant, and then vest as to 25% of the total options granted after each of the second and third year anniversary dates.
The following table outlines changes in stock options:
For the nine months ended For the year ended(thousands except per share amounts) December 31, 2012 March 31, 2012-------------------------------------------------------------------------------------------------------------------------------------------------------- Weighted Weighted Average Average Exercise Exercise Options Price Options Price Granted ($/share) Granted ($/share)----------------------------------------------------------------------------Outstanding at beginning of period 2,903 9.85 2,825 7.41Granted 1,004 18.18 1,071 13.43Exercised (601) 8.42 (913) 6.43Forfeited/cancelled (49) 15.00 (80) 10.57----------------------------------------------------------------------------Outstanding at end of period 3,257 12.60 2,903 9.85----------------------------------------------------------------------------Options exercisable at end of period 1,516 9.30 1,120 7.31--------------------------------------------------------------------------------------------------------------------------------------------------------
