Tucows, Inc. is commencing a modified ‘Dutch auction’ tender offer to repurchase up to 5 million shares of its common stock, representing approximately 7.4 percent of Tucows’ outstanding shares.

Under the tender offer, shareholders can tender some or all of their shares at a price within the range of $0.40 to $0.60 per share.

Based on the number of shares tendered and the prices offered by the tendering shareholders, Tucows will determine the lowest per share price within the range that will enable it to buy up to 5 million shares.

If shareholders collectively tender more than 5 million shares at or below the determined price per share, Tucows will purchase such shares at the determined price per share, on a pro rata basis. Having said that, Tucows is also prepared to buy another 2 percent of the outstanding stock if more than 5 million shares are properly tendered.

None of Tucows’ board of directors or executive officers intend to participate in the tender offer. For more information contact StockTrans, Inc., the information agent for the offer.

The buy-back offer expires at 5 pm EST, on Friday, September 18, 2009.

So why is Tucows intent on buying back a hunk of its shares? Companies vary in their motivations for doing share buy-backs. It can be a sign of huge faith in the company or it can be for other reasons. I won’t speculate here, but if I was an investor in Tucows I sure would want to know…

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