CALGARY, Dec. 12, 2016 /CNW/ – Northern Blizzard Resources Inc. (“Northern Blizzard” or the “Company”) (TSX: NBZ) is pleased to announce the Company’s substantial issuer bid to purchase up to $75.0 million of its common shares will be filed with securities regulators today.
On December 5, 2016, Northern Blizzard announced its intention to commence a substantial issuer bid (the “Offer”) pursuant to which the Company will offer to purchase for cancellation up to $75.0 million of its common shares (“Shares”) at a price of $4.00 per Share. The maximum number of Shares that may be purchased by the Company is 18,750,000. The formal offer to purchase and issuer bid circular and other related documents (the “Offer Documents”) will be filed with securities regulators today and will be available on the Company’s website at www.northernblizzard.com and on SEDAR at www.sedar.com. The Offer Documents contain the full terms and conditions of the Offer and instructions for tendering Shares and are expected to be mailed to shareholders on or about December 14, 2016.
The Offer will remain open for acceptance until 5:00 p.m. (Toronto time) on January 20, 2017, unless withdrawn or extended by the Company. If more than 18,750,000 Shares are properly tendered to the Offer, the Company will take-up and pay for the tendered Shares on a pro-rata basis according to the number of Shares tendered, subject to preferential treatment for odd lots.
R/C Canada Coöperatief U.A., which owns 28.9% of Northern Blizzard’s Shares, does not intend to tender any Shares pursuant to the Offer. NGP IX Northern Blizzard S.à.r.l., which owns 42.4% of Northern Blizzard’s Shares, has entered into a lock-up agreement to tender all of its Shares pursuant to the Offer. Northern Blizzard’s directors and officers do not intend to tender their Shares.
Neither the Company nor the Board make any recommendation to shareholders as to whether to tender or refrain from tendering Shares to the Offer. Shareholders should review the Offer Documents carefully and are strongly encouraged to consult with their financial, tax and legal advisors prior to making any decision with respect to the Offer.
This news release is neither an offer to purchase nor a solicitation of an offer to sell any Shares. The solicitation and the offer to purchase Shares by the Company will be made pursuant to the Offer Documents that the Company will file with the securities regulators and that it will distribute to its shareholders.
CIBC World Markets Inc. was retained by the Company as financial advisor in connection with the Offer.
Northern Blizzard is a Canadian crude oil production and development company focused on maximizing oil recovery from its large-scale low viscosity heavy oil resource base. The Company’s operations, infrastructure and concentrated land position are focused in southwest Saskatchewan. Northern Blizzard’s Shares trade on the Toronto Stock Exchange under the symbol NBZ.