CALGARY, Alberta, Nov. 20, 2018 (GLOBE NEWSWIRE) — Birchcliff Energy Ltd. (“Birchcliff” or the “Corporation”) (TSX: BIR) is pleased to announce that the Toronto Stock Exchange (the “TSX”) has accepted the Corporation’s notice of intention to make a normal course issuer bid (the “NCIB”).
The NCIB will commence on November 23, 2018 and will terminate on November 22, 2019, or such earlier time as the NCIB is completed or is terminated at the option of Birchcliff. Purchases under the NCIB will be effected through the facilities of the TSX and/or Canadian alternative trading systems at the prevailing market price at the time of such transaction.
Pursuant to the NCIB, Birchcliff may purchase up to 18,767,520 of its outstanding common shares (“Common Shares”), which represents 10% of the “public float” (as such term is defined by the policies of the TSX). As at November 9, 2018, Birchcliff had 265,911,362 Common Shares issued and outstanding and the public float was 187,675,206 Common Shares. Pursuant to the rules of the TSX, the total number of Common Shares that Birchcliff is permitted to purchase is subject to a daily purchase limit of 320,520 Common Shares, which represents 25% of the average daily trading volume of 1,282,080 Common Shares on the TSX for the six-month period ended October 31, 2018; provided, however, that Birchcliff may make one block purchase per calendar week which exceeds the daily purchase restriction. The actual number of Common Shares purchased pursuant to the NCIB and the timing of such purchases will be determined by Birchcliff and is dependent on future market conditions. All Common Shares purchased under the NCIB will be cancelled.
Birchcliff’s previous NCIB expired on November 19, 2018 (the “Previous NCIB”). Under the Previous NCIB, Birchcliff obtained the approval of the TSX to purchase up to 20,121,747 Common Shares, which represented 10% of the “public float” at the time of approval. The Corporation did not purchase any Common Shares under the Previous NCIB.
Birchcliff believes that within a continued volatile market environment, the prevailing market price of its Common Shares from time to time may not reflect the underlying value of such shares. Accordingly, depending on the market price of the Common Shares and other relevant factors, Birchcliff believes that purchasing its Common Shares may represent an attractive investment opportunity and be in the best interests of the Corporation and its shareholders.