CALGARY, AB, Sept. 15, 2017 (GLOBE NEWSWIRE) — High Arctic Energy Services Inc. (TSX:HWO) (“High Arctic” or the “Corporation”) is pleased to announce that it has made the necessary filings, and received the necessary approvals to conduct a normal course issuer bid (“NCIB”) through the facilities of the Toronto Stock Exchange (“TSX”).
The TSX has accepted the Corporation’s notice to conduct the NCIB to purchase outstanding common shares on the open market, in accordance with the rules of the TSX. As approved by the TSX, the Corporation is authorized to purchase up to 2,902,733 common shares, representing approximately 10% of the public float of High Arctic, being 29,027,338 as of September 14, 2017. As of September 14, 2017, there were 53,276,039 common shares outstanding. The maximum number of common shares that High Arctic may purchase on any given day is 20,959 common shares, which is 25% of the Corporation’s average daily trading volume on the TSX for the six months ended August 31, 2017. High Arctic may also make one weekly block repurchase which exceeds the daily limit subject to prescribed rules. All common shares acquired under the NCIB will be cancelled.
The Corporation is authorized to make purchases during the period from September 19, 2017 to September 18, 2018, or until such earlier time as the NCIB is completed or terminated at the option of the Corporation. Any common shares the Corporation purchases under the NCIB will be purchased on the open market through the facilities of the TSX and/or alternative trading systems, at the prevailing market price at the time of the transaction. The Corporation has appointed National Bank Financial Inc. (“National Bank”) as its broker to conduct the NCIB transactions under an automatic purchase plan agreement (“APPA”) dated September 14, 2017. The APPA will allow National Bank to purchase common shares under the bid during internal blackout periods when the Corporation would normally not be permitted to trade in its shares. Such purchases will be at the sole discretion of National Bank based on direction received from High Arctic prior to any blackout period and in accordance with all regulatory and securities law.
Management of the Corporation believes that from time to time the market price of the High Arctic common shares may not reflect their underlying value and that, at such times, the purchase of common shares for cancellation will increase the proportionate interest of, and be advantageous to, all remaining shareholders. In addition, the purchases by High Arctic under the NCIB may increase liquidity to the Corporation’s shareholders wishing to sell their common shares. The Corporation’s previous NCIB expired on January 11, 2017 and under that program, a total of 1,845,800 common shares at a weighted average price of $3.40 per share were repurchased for cancellation.
This Press Release contains forward-looking statements. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “seek”, “propose”, “estimate”, “expect”, and similar expressions are intended to identify forward-looking statements. Such statements reflect the Corporation’s current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause the Corporation’s actual results, performance or achievements to vary from those described in this Press Release. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this Press Release as intended, planned, anticipated, believed, estimated or expected.
Specific forward looking statements in this Press Release include, among others, statements pertaining to the following: High Arctic’s intentions with respect to the NCIB and purchases thereunder and the effects of repurchases under the bid.
With respect to forward-looking statements contained in this Press Release, the Corporation has made assumptions regarding, among other things, that the common shares will from time to time trade below their value and that the Corporation will complete purchases of common shares pursuant to the NCIB.
The Corporation’s actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors set forth above and elsewhere in this Press Release, along with the risk factors set out in the most recent Annual Information Form filed on SEDAR at www.sedar.com.
The forward-looking statements contained in this Press Release are expressly qualified in their entirety by this cautionary statement. These statements are given only as of the date of this Press Release. The Corporation does not assume any obligation to update these forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law.
About High Arctic
High Arctic is a publicly traded company listed on the Toronto Stock Exchange under the symbol “HWO”. The Corporation’s principal focus is to provide drilling and specialized well completion services, equipment rentals and other services to the oil and gas industry.
High Arctic’s largest operation is in Papua New Guinea where it provides drilling and specialized well completion services and supplies rig matting, camps and drilling support equipment on a rental basis. The Canadian operation provides well servicing, well abandonment, snubbing and nitrogen services and equipment on a rental basis to a large number of oil and natural gas exploration and production companies operating in Western Canada.
For more information, please contact:
Interim President & CEO
Chief Financial Officer