CALGARY, AB--(Marketwired - May 01, 2017) - Divestco Inc. ("Divestco" or the "Company") (TSX VENTURE: DVT) announces that it intends to commence a normal course issuer bid (the "Bid"), whereby certain of the issued and outstanding Class A shares of Divestco (the "Class A Shares") will be purchased through the TSX Venture Exchange (the "TSXV") and cancelled. The Bid has been filed with and accepted by the TSXV and pursuant to the terms and conditions of the Bid, Divestco may purchase up to 3,344,180 (a maximum of 5%) of its issued and outstanding Class A Shares (66,883,608 Class A Shares are outstanding as at May 1, 2017) in a twelve-month period. The Bid will commence on the 2nd day of May, 2017 and will terminate on the earlier of the 1st day of May, 2018 and the date on which the maximum number of Class A Shares are purchased pursuant to the Bid. Purchases of Class A Shares under the Bid will occur at the market price at the time of purchase. Purchases made pursuant to the bid will be made by Canaccord Genuity Wealth Management, a division of Canaccord Genuity Group on behalf of Divestco. Divestco has previously purchased its Class A Shares pursuant to normal course issuer bids from 2004 to 2008.
The Company's board of directors and management believe that from time to time, the market price of its Class A Shares may not reflect their underlying value and that the purchase of its Class A Shares may represent an appropriate and desirable use of corporate funds. Divestco intends to fund the purchases out of available cash.
Divestco also announces that pursuant to the Company's stock option plan, it has granted stock options to acquire up to an aggregate of 4,250,000 Class A shares, including 2,000,000 options granted to officers and 750,000 options granted to the Board of Directors. The options are for a five-year term, expiring on April 30, 2022, and are exercisable at a price of $0.08 per share pursuant to a vesting schedule of one-third following the first anniversary of the date of grant (the "Grant Date"), one-third following the second anniversary of the Grant Date and the remaining one-third following the third anniversary of the Grant Date.
About the Company
Divestco provides innovative geoscience solutions to Energy and Service companies worldwide. Our customers predominantly operate in the areas of geology, geophysics and engineering and we work with our clients to ensure they have the right solutions, at the right time, to help them make more informed decisions. Commitment, innovation, accountability and agility form the cornerstone of our values and enable us to consistently provide reliable solutions and exceptional, personalized service in all of the core areas in which we operate. Divestco provides Software & Data, Seismic Processing, Geomatics Services, and Seismic Data & Brokerage. Divestco is headquartered in Calgary and trades on the TSX Venture Exchange under the symbol "DVT".
Additional information on the Company is available on its website at Divestco.com and on SEDAR at sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Forward-Looking Information and Statements
In particular, this press release contains forward-looking information and statements pertaining to the Bid. This forward-looking information and the related statements are based upon factors, expectations and assumptions reflected in the forward-looking statements that reasonable at this time but no assurance can be given that these factors, expectations and assumptions will prove to be correct.
The forward-looking information and statements contained in this press release are based upon several material factors and expectations and assumptions of Divestco including, without limitation: Divestco's status as a going concern; that Divestco will continue to conduct its operations in a manner consistent with past operations; future interests rates; future availability of debt and/or equity sources to fund Divestco's capital and operating requirements as needed on terms acceptable to management of Divestco or at all; future prices for crude oil and natural gas; and the ability of the Company to complete a sale of non-strategic assets, including but not limited to finding appropriate potential purchasers who are willing to purchase such assets at market prices.
The forward-looking information and statements included in this press release are not guarantees of future performance and should not be unduly relied upon. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information and statements including, without limitation: general economic, market and business conditions; increased debt levels or debt service requirements; limited, unfavourable or no access to debt or equity capital markets; volatility in market prices for crude oil and natural gas; ability of Divestco's clients to explore for, develop and produce oil and gas; availability of financing and capital; the ability of Divestco's customers to pay in a timely manner; fluctuations in interest rates; demand for the Company's product and services; the lack of a suitable purchaser for Divestco's non-strategic assets; competitive actions by other companies; failure to obtain regulatory approvals in a timely manner; adverse conditions in the debt and equity markets; and government actions including changes in environment and other regulation; and certain other risks detailed from time to time in Divestco's public disclosure documents including, without limitation, those risks identified in this press release.
The forward-looking information and statements contained in this press release speak only as of the date of this press release, and Divestco does not assume any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws.