Shares in Vecima Networks surged 30 per cent Wednesday after the Victoria-based technology company announced it had retained a financial adviser to explore "strategic alternatives," including a possible merger or the sale of assets.
Vecima designs and manufactures hardware for the cable, wireless and telephone industries. It is one of British Columbia's top revenue-producing tech companies and the most valuable public company based on the Island with a market capitalization of $102.65 million after markets closed Wednesday.
Vecima shares on the Toronto Stock Exchange were up 99 cents to $4.60 - a 52-week high - after the company announced it had retained Stifel Nicolaus & Co. for its first "defined strategic review."
Shares have traded as low as $2.45 over the year.
"Vecima has a strong balance sheet and does not believe that its current share price accurately reflects the present or potential value of its core technologies, business operations and asset holdings," the company said in a statement.
"Strategic alternatives to be considered may include partnerships, alternative strategic business models, a sale of assets or other transactions."
Chairman and CEO Surinder Kumar added that, during the review, "Vecima will remain focused on managing growth in revenue and profitability which is driven by our investment in research and development and introduction of new products."
Vecima does not have a defined timeline for the strategic review, and said there can be no assurance that the review will result in any specific action or transaction.
Vecima was ranked No. 11 in revenues among tech companies in B.C. last year, pulling in $84.5 million.
Vecima has sold four non-core real estate holdings over the past 2 1 /2 years for net proceeds of $10.5 million.
Over the same period, the company has also sold $31.5 million of radio spectrum licences.
Vecima still has still up to $35 million in real estate holdings as well as $10 million to 15 million in radio spectrum licences.
