CALGARY, Alberta, Nov. 16, 2017 (GLOBE NEWSWIRE) — RMP Energy Inc. (the “Company“) (TSX:RMP) is pleased to announce that the Toronto Stock Exchange (“TSX“) has accepted the Company’s notice of intention to commence a normal course issuer bid (the “NCIB“). Under the NCIB, the Company may purchase for cancellation, from time to time, as it considers advisable, up to a maximum of 12,000,000 common shares of the Corporation (“Common Shares“), which represents approximately 9% of its 136,661,148 public float as at November 9, 2017. Purchases of Common Shares may be made on the open market through the facilities of the TSX and through other alternative Canadian trading platforms at the prevailing market price at the time of such transaction. The actual number of Common Shares that may be purchased for cancellation and the timing of any such purchases will be determined by the Company, subject to a maximum daily purchase limitation of 63,168 Common Shares which equates to 25% of its average daily trading volume of 252,675 for the six months ended October 31, 2017. The Company may make one block purchase per calendar week which exceeds the daily repurchase restrictions. Any Common Shares that are purchased under the NCIB will be cancelled.
The NCIB will commence on November 20, 2017 and will terminate on November 19, 2018 or such earlier time as the NCIB is completed or terminated at the option of the Company.
The actual number of Common Shares purchased under the NCIB, the timing of purchases, and the price at which the Common Shares will be purchased, will depend on future market conditions. The Company has implemented a restriction on the maximum aggregate value of Common Shares to be purchased during the term of the NCIB of $7.5 million.
The Company believes that within a continued volatile equity market environment, at times, the prevailing market price does not reflect the underlying value of its Common Shares and the repurchase of its Common Shares for cancellation represents an attractive opportunity to enhance the Company’s per share metrics and thereby increase the underlying value to its shareholders. The Company intends to use the NCIB as another tool to enhance total long-term shareholder returns in conjunction with management’s disciplined capital allocation strategy.