CALGARY, AB, April 6, 2023 /CNW/ – Advantage Energy Ltd. (“Advantage” or the “Corporation”) announced today that the Corporation is proceeding with, and the Toronto Stock Exchange (the “TSX”) has approved, the Corporation renewing its normal course issuer bid (the “Bid”).
Pursuant to the Bid, Advantage will purchase for cancellation, from time to time, as it considers advisable, up to a maximum of 16,201,997 common shares of the Corporation. The Bid will commence on April 13, 2023 and will terminate on April 12, 2024 or such earlier time as the Bid is completed or terminated at the option of Advantage.
The maximum number of common shares to be purchased pursuant to the Bid represents 10% of the public float, as of March 31, 2023. Purchases pursuant to the Bid will be made on the open market through the facilities of the TSX and/or Canadian alternative trading systems. The number of common shares that can be purchased pursuant to the Bid is subject to a daily maximum of 223,690 common shares (which is equal to 25% of the average daily trading volume of 894,762 common shares from October 1, 2022 to March 31, 2023), subject to certain exemptions pursuant to the rules of the TSX. The price that Advantage will pay for any common shares under the Bid will be the prevailing market price on the TSX at the time of such purchase. Common shares acquired under the Bid will be cancelled.
Cormark Securities Inc. (“Cormark”) has agreed to act on the Corporation’s behalf to make purchases of common shares pursuant to the Bid.
Advantage believes that the common shares have been trading in a price range which does not adequately reflect their value in relation to the Corporation’s current operations and its growth prospects, and that, at such times, the purchase of common shares for cancellation will increase the proportionate interest of, and be advantageous to, all shareholders.
As of the close of business on March 31, 2023, the Corporation had 166,258,389 common shares issued and outstanding and a public float of 162,019,975.
Further, the Corporation has entered into an automatic share purchase plan with Cormark in order to facilitate repurchases of its common shares under the Bid at times when the Corporation would ordinarily not be permitted to purchase its securities due to self-imposed blackout periods. Under the automatic share purchase plan, Cormark may repurchase common shares based upon the parameters prescribed by the TSX and applicable securities laws and the terms of the plan and the parties’ written agreement. Outside of these blackout periods, common shares may be purchased under the Bid in accordance with management’s discretion. The automatic share purchase plan has been approved by the TSX.
Under Advantage’s normal course issuer bid expiring on April 12, 2023 (the “Expiring NCIB”), the Corporation received approval from the TSX to purchase for cancellation up to a maximum of 18,704,019 common shares, representing approximately 10% of the 187,040,191 common shares comprising the public float as of April 1, 2022. As of March 31, 2023, the Corporation had repurchased and cancelled 18,704,019 common shares under the Expiring NCIB, at a weighted average purchase price of approximately $10.01 per common share through market purchases on the TSX and Canadian alternative trading systems.