CALGARY, Alberta – Birchcliff Energy Ltd. (“Birchcliff” or the “Corporation”) (TSX: BIR) is pleased to announce that the Toronto Stock Exchange (the “TSX”) has accepted the notice of Birchcliff’s intention to make a normal course issuer bid (the “NCIB”). The NCIB effectively renews the Corporation’s existing normal course issuer bid which is set to expire on November 24, 2021.
The NCIB allows Birchcliff to purchase up to 13,267,554 common shares (representing 5% of its 265,351,094 common shares outstanding as at November 11, 2021) over a period of twelve months commencing on November 25, 2021. The NCIB will terminate no later than November 24, 2022. Under the NCIB, common shares may be purchased in open market transactions on the TSX and/or alternative Canadian trading systems at the prevailing market price at the time of such transaction. 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 382,548 common shares, which represents 25% of the average daily trading volume of 1,530,192 common shares on the TSX for the six-month period ended October 31, 2021. However, Birchcliff may make one block purchase per calendar week which exceeds the daily purchase restriction. All common shares purchased under the NCIB will be cancelled.
Birchcliff believes that at times, the prevailing market price of its common shares may not reflect the underlying value of the shares and the Corporation’s business. 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 opportunity to enhance Birchcliff’s per share metrics by reducing the number of common shares outstanding, thereby increasing the per share value of the remaining common shares. In addition, Birchcliff may use the NCIB to help offset the number of common shares it issues throughout the year pursuant to the exercise of options granted under its stock option plan in order to minimize or eliminate dilution to shareholders.
The actual number of common shares purchased pursuant to the NCIB and the timing of such purchases will be determined by Birchcliff. There cannot be any assurance as to how many common shares, if any, will ultimately be acquired by the Corporation.
Under Birchcliff’s existing normal course issuer bid (the “Existing NCIB”), it obtained the approval of the TSX to purchase up to 13,296,936 common shares over the period from November 25, 2020 to November 24, 2021. As at November 16, 2021, the Corporation has purchased 4,048,700 common shares under the Existing NCIB at a weighted average price per share of $5.73 through the facilities of the TSX and alternative Canadian trading systems.