CALGARY, Alberta, Nov. 28, 2017 (GLOBE NEWSWIRE) — Prairie Provident Resources Inc. (“Prairie Provident” or the “Company”) announces that the Toronto Stock Exchange (“TSX”) has accepted for filing the Company’s notice of intention to make a normal course issuer bid (“NCIB”).
Pursuant to the NCIB, Prairie Provident may repurchase from time to time up to a maximum of 4,900,000 common shares, at such times and in such quantities as the Company may determine, subject to applicable regulatory restrictions. Purchases under the NCIB may be made through open market transactions on the TSX and any alternative Canadian trading platforms on which the common shares are traded, based on the prevailing market price. Any common shares purchased under the NCIB will be cancelled.
Transactions under the NCIB will depend on future market conditions. Prairie Provident retains discretion whether to make purchases under the NCIB, and to determine the timing, amount and acceptable price of any such purchases, subject at all times to applicable TSX and other regulatory requirements.
The period during which Prairie Provident is authorized to make purchases under the NCIB commences on December 1, 2017 and ends on November 30, 2018 or such earlier date as the NCIB is completed or is terminated at the Company’s election.
Under TSX rules, not more than 21,517 common shares (being 25% of the average daily trading volume on the TSX of 86,069 common shares for the six months ended October 2017) can be purchased on the TSX on any single trading day under the NCIB, except that one block purchase in excess of the daily maximum is permitted per calendar week.
The NCIB provides the Company with an additional capital allocation alternative with a view to long-term shareholder value. In circumstances where the prevailing market price of the common shares does not reflect what Prairie Provident believes to be the underlying value of its business and assets, a purchase of common shares for cancellation under the NCIB may provide an opportunity to enhance shareholder value by increasing the proportionate equity interest of remaining shareholders at an attractive valuation and improving per share metrics on an accretive basis.
The Company has appointed AltaCorp Capital Inc. as its broker to make any NCIB purchases on its behalf.
As of November 22, 2017, there are 115,887,699 common shares outstanding, of which 49,806,386 common shares are considered to be in the public float as not held by directors, officers or principal shareholders of the Company. Accordingly, the maximum number of common shares that may be repurchased under the NCIB represents approximately 4.3% of the number of common shares currently outstanding, and approximately 9.8% of the public float.
ABOUT PRAIRIE PROVIDENT:
Prairie Provident is a Calgary-based company engaged in the exploration and development of oil and natural gas properties in Alberta. The Company’s strategy is to grow organically in combination with accretive acquisitions of conventional oil prospects, which can be efficiently developed. Prairie Provident’s operations are primarily focused at Wheatland and Princess in Southern Alberta targeting the Ellerslie and the Lithic Glauc formations, along with an early stage waterflood project at Evi in the Peace River Arch. Prairie Provident protects its balance sheet through an active hedging program and manages risk by allocating capital to opportunities offering maximum shareholder returns.