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Note 14 - Subsequent Events
6 Months Ended
Jun. 30, 2011
Subsequent Events [Text Block]
14. SUBSEQUENT EVENTS

 
a.
Amendment to the Company's credit facility with the Bank of Montreal.

On July 27, 2011, the Company and the Bank of Montreal amended the Company's credit facility to modify the terms and amount of the facility. The Amended Credit Facility continues to provide for (i) repayment of the current outstanding balance under Existing Demand Loan 1, (ii) the Treasury Risk Management Facility and (iii) the Existing Operating Demand Loan. Under the Amended Credit Facility, Existing Demand Loan 2 has been restructured to provide an aggregate of $8.0 million in funds available through a demand loan revolving facility (the “2011 DLR Loan”) and a demand loan revolving, reducing facility (the “2011 DLRR Loan”, and together with the 2011 DLR Loan, the “2011 Demand Loan Facilities”). Advances under the 2011 Demand Loan Facilities are to be used to finance repurchases of Company Common Stock and for certain permitted acquisitions.

On July 28, 2011, the Company drew down $2.5 million on the 2011 DLR Loan to fund the acquisition of EPAG Domainservices GmbH referenced below.

 
b.
Acquisition of EPAG Domainservices GmbH

On August 1, 2011, the Company, through its wholly-owned subsidiary Tucows (Germany) Inc., entered into a Stock Purchase Agreement with QSC AG pursuant to which it acquired all the shares of EPAG Domainservices GmbH from QSC AG for approximately US$2.5 million (€1.75 million) in an all cash transaction. The aggregate purchase price consisted of approximately US$2.1 million to purchase the shares and the settlement of a working capital adjustment of approximately US$0.4 million.