(TSX: AAV, NYSE: AAV) CALGARY, March 21, 2018 /CNW/ – Advantage Oil & Gas Ltd. (“Advantage“) is commencing an odd-lot share repurchase program (the “Odd Lot Program“) pursuant to which it will offer to buy back common shares from registered and beneficial shareholders of Advantage who own 99 or fewer common shares (“Odd Lot Holders“). The Odd Lot Program affords Odd Lot Holders the opportunity to sell all, but not less than all, of their common shares or to continue to maintain their current holdings. Advantage will purchase up to a maximum of Cdn. $4 million of its common shares under the Odd Lot Program (the “Maximum“).
The Odd Lot Program will begin on March 27, 2018 and will expire once the Maximum is met or at the close of business on May 8, 2018 (the “Period“), unless otherwise extended. Advantage may extend the Period for up to an additional six weeks and may increase the Maximum at its sole discretion.
Under the Odd Lot Program, Advantage will pay tendering Odd Lot Holders the following:
- Canadian Odd Lot Holders will receive a price per common share equal to the five day volume weighted average price (“5 day VWAP“) of the common shares on the Toronto Stock Exchange for the week (i.e., calculated on the Friday) immediately prior to the week in which the Odd Lot Holder tenders their common shares; and
- United States Odd Lot Holders will receive a price per common share equal to the 5 day VWAP of the common shares on the New York Stock Exchange for the week (i.e., calculated on the Friday) immediately prior to the week in which the Odd Lot Holder tenders their common shares.
Advantage believes that the Odd Lot Program will be beneficial to Odd Lot Holders as it is a voluntary program allowing tendering Odd Lot Holders to dispose of their common shares without incurring prohibitive brokerage and other fees. Further, if the Odd Lot Program is successful in significantly reducing the number of Odd Lot Holders, Advantage believes that both Advantage and its securityholders will benefit from the cost-savings respecting annual mailings and other securityholder communications as a result of a reduced number of shareholders.
The Odd Lot Program will be open to Odd Lot Holders of record as of March 20, 2018. Information about the Odd Lot Program and participation documents will be mailed to those Odd Lot Holders. Advantage has retained Computershare Investor Services Inc. (“Computershare“) to manage the Odd Lot Program. Questions regarding the Odd Lot Program should be directed to Computershare toll free at 1-800-564-6253.
As of March 20, 2018, approximately 0.1% of the common shares are held by Odd Lot Holders. Any common shares purchased by Advantage under the Odd Lot Program will be cancelled.