TransForce is making an issuer bid under a modified Dutch auction with a specified amount in the lower part of the potential range of purchase prices

TransForce is proposing to repurchase approximately 11% of its outstanding common shares under a modified Dutch auction at a price of between $19.00 and $22.00 per share. Deemed dividends will result, as the paid-up capital per share is around $8.00. Consistently with other issuer bids, the safe harbour from Part VI.1 tax for repurchase amounts paid up to the "specified amount" is considered to be available even where the specified amount is meaningless from a commerical standpoint. The Offer has a stand-alone statement that: “For the purposes of subsection 191(4) of the Income Tax Act (Canada), the "specified amount" in respect of each Share will be $19.61.”

Neal Armstrong. Summary of Offer of TransForce Inc. under Other – Issuer Bids – Share Offer.