Sangoma reaches key financial milestone under its capital allocation strategy and initiates a normal course issuer bid
MARKHAM, ONTARIO, March 25, 2025 – Sangoma Technologies Corporation (TSX: STC; Nasdaq: SANG) (“Sangoma” or the “Company”), a trusted leader providing businesses with Communications as a Service solutions in on-premises, cloud or hybrid environments, today announced that, following the accelerated achievement of its previously announced debt reduction targets under its capital allocation strategy, the Company is launching a normal course issuer bid (NCIB) for its common shares (the “Shares”).
On 24 March 2025, the Company issued an irrevocable notice for an additional repayment of 2,9 million $ of debt under its credit facility, bringing total third-quarter repayments to approximately 7,3 million $. This includes the full repayment of the Company’s Term Loan 1, reducing total debt to approximately 53 million $ at the end of T3. With this milestone, Sangoma exceeded its announced debt reduction target for fiscal 2025, reaching the 55‑60 million $ target well ahead of schedule.
Building on the consistent operating cash flow generated by the business, Sangoma remains committed to strengthening its balance sheet to support future acquisitions, drive long-term profitable growth and allocate capital efficiently. Following the successful acceleration of our debt reduction strategy, we are now well positioned to continue returning value to shareholders. The Company believes that the current market price of our shares represents an attractive opportunity given its strong fundamentals and long-term growth potential. Accordingly, the board of directors has authorized the Company to proceed with an NCIB as a prudent and strategic use of capital. This buyback program reflects our confidence in the Company's future while preserving financial flexibility to accelerate the Company's strategic alternatives as described in its latest earnings release. The timing and amount of repurchases will depend on factors such as valuation, liquidity and potential acquisitions.
The Toronto Stock Exchange (TSX) has accepted a notice filed by the Company regarding its intention to proceed with an NCIB. The notice specifies that Sangoma may, during the 12-month period beginning March 27, 2025 and ending no later than March 26, 2026, purchase up to 1,679,720 Shares, representing approximately 5% of the total 33,594,409 Shares outstanding as of March 17, 2025. The NCIB will be conducted through the facilities of the TSX, the NASDAQ Global Select Market or other Canadian trading systems. Shares acquired under the NCIB will be purchased at market price and cancelled.
The average daily trading volume of Shares on the TSX (ADTV) for the last six calendar months is 37,718. In accordance with TSX policies, daily purchases under the NCIB will be limited to 9,429 Shares, or 25% of the ADTV, subject to the Company’s ability to make one block purchase of Shares per calendar week exceeding this limit. The Company will fund purchases of Shares under the NCIB from available excess cash generated by its operations.
Sangoma has entered into an automatic share purchase plan with a designated broker to allow Shares to be purchased under the NCIB at times when the Company would not normally be permitted to purchase Shares due to self-imposed blackout periods, insider trading rules or other restrictions.
About Sangoma Technologies Corporation
Sangoma (TSX: STC; Nasdaq: SANG) is a leading provider of business communication platforms, offering solutions that include its UCaaS, CCaaS, CPaaS and trunking technologies. Its enterprise-grade communication suite is developed in-house and available for cloud, hybrid or on-premises deployments. In addition, Sangoma offers managed connectivity, networking and security services. A trusted partner for over 40 years, Sangoma has more than 2.7 million UC seats across a diverse base of over 100,000 customers. Sangoma has been recognized for nine consecutive years in the Gartner UCaaS Magic Quadrant. As the developer and principal sponsor of the Asterisk and FreePBX open source projects, Sangoma is committed to continuously driving innovation in communication technology. For more information, visit www.sangoma.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements, including statements concerning the future success of our business, development strategies and future opportunities.
Forward-looking statements are provided to present management’s current expectations and plans regarding the future, and readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking statements include, but are not limited to, statements relating to the Normal Course Issuer Bid (“NCIB”), expectations regarding the number of shares to be repurchased, the timing and execution of purchases under the NCIB, as well as the anticipated impact of the NCIB on shareholder value, the Company’s financial position, capital allocation strategy, and other statements that are not historical facts. When used in this document, terms such as “could,” “plan,” “estimate,” “believe,” “expect,” “will,” “intend,” “may,” “potential,” “should,” and similar expressions indicate forward-looking statements.
Although Sangoma believes that its expectations reflected in these forward-looking statements are reasonable, these statements involve risks and uncertainties, and no assurance can be given that actual results will conform to these forward-looking statements. Forward-looking statements are based on management’s opinions and estimates as of the date they are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements.
Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations on which they are based will be realized. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks, both general and specific, that contribute to the possibility that the forecasts, projections and other events contemplated by the forward-looking statements will not occur. Although Sangoma believes that the expectations represented by these forward-looking statements are reasonable, no assurance can be given as to their accuracy, as these expectations are inherently subject to business, economic and competitive uncertainties and contingencies. Some of the risks and other factors that could cause results to differ from those expressed in the forward-looking statements include, but are not limited to, risks related to fluctuations in exchange rates between the Canadian dollar and other currencies (particularly the U.S. dollar), technological changes, changes in the economic climate, macroeconomic conditions, including (i) inflationary pressures and potential recessionary conditions, as well as actions taken by central banks and regulators around the world to reduce, limit and address these pressures and conditions, including any increases in interest rates, and (ii) the effects of adverse developments in financial institutions, including bank failures, that affect general sentiment regarding the stability and liquidity of banks, and the resulting impact on the stability of global financial markets, risks related to any pandemic or epidemic, our ability to identify and effectively remediate material weaknesses and significant deficiencies in our internal controls, our current level of indebtedness and our ability to incur additional short- and long-term indebtedness; changes in the regulatory environment, the imposition of tariffs, the declining importance of the PSTN (as defined in our MD&A), goodwill impairment and new competitive pressures, political unrest, geopolitical instability and tensions, or terrorist attacks, as well as changes associated with trade policies and global economic sanctions, including, but not limited to, in connection with (x) the ongoing conflict in Ukraine (the “Russo-Ukrainian War”) and (y) any impact, effect, damage, destruction and/or bodily injury directly or indirectly related to the ongoing hostilities in the Middle East, and technological changes affecting the development of our products and the implementation of our business requirements, particularly with respect to automation and the use of artificial intelligence (“AI”), and the other risk factors described in our latest annual information form filed for the fiscal year ended June 30, 2024.