CALGARY, Feb. 7, 2019 /CNW/ – PetroShale Inc. (“PetroShale” or the “Company“) (TSXV: PSH, OTCQX: PSHIF) is pleased to announce that, subject to the approval of the TSX Venture Exchange (the “TSXV“), it intends to commence a Normal Course Issuer Bid (the “Bid“) to purchase for cancellation, from time to time, as PetroShale considers advisable, up to 9,839,663 voting common shares (“Common Shares“) of the Company, representing approximately 10% of the current public float of 98,396,631 Common Shares (excluding directors, officers, FR XIII PetroShale Holding L.P. and other shareholders who hold in excess of 10% of Common Shares).
Purchases of Common Shares will be made on the open market through the facilities of the TSXV and/or permitted alternative trading systems. The price that PetroShale will pay for any Common Shares purchased by it will be the prevailing market price of the Common Shares at the time of such purchase. 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 and dependent on market conditions.
The Bid will commence on February 8, 2019 and will terminate on February 8, 2020 or at such earlier time as the Bid is completed or terminated at the option of PetroShale. The Company has retained National Bank Financial Inc. as its broker to conduct the Bid on its behalf.
Management of the Company is of the view that at times the trading price of the Common Shares may not fully reflect the underlying value of the Company’s business. The ability of the Company to repurchase its Common Shares for cancellation may at times represent an attractive opportunity to enhance the Company’s per Common Share metrics and thereby increase the underlying value of the Common Shares for all shareholders.
PetroShale is an oil company engaged in the acquisition, development and consolidation of interests in the North Dakota Bakken / Three Forks.