"The common shares purchased will be cancelled." Forgive my ignorance,but this statement in today`s news release sounds very ominous.

When issued shares are "purchased" (or more exactly 'bought back") by a corporation, the redeemed shares are cancelled from the OS pursuant to the applicable corporate legislation (here the CBC Act).

In other word, the shares return back to the corporation's Treasury. In accounting words (I stand to be corrected), the Balance Sheet's CASH is credited of an amount equal to the price paid to the sellor, the SHARES CAPITAL is debited of an amount equal to the original issuance price (paid-up capital), and the premium or discount, if any, is applied to somewhere my limited accounting knowledge cannot name precisely!!! (Contributed Surplus???).

GLTA.

BaBe.