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CALGARY, Alberta, Nov. 27, 2019 (GLOBE NEWSWIRE) -- High Arctic Energy Services Inc. (HWO.TO) (“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 2,552,229 common shares, representing approximately 10% of the public float of High Arctic, being 25,522,297 as of November 26, 2019. There were 49,620,098 common shares outstanding as of November 26, 2019. The maximum number of common shares that High Arctic may purchase on any given day is 5,899 common shares, which represents 25% of the average daily trading volume of 23,598 common shares on the TSX for the six-month period ended October 31, 2019. 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 December 2, 2019 to December 1, 2020, 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 or alternative Canadian markets, at the prevailing market price at the time of the transaction. The Corporation has appointed National Bank Financial as its broker to conduct the NCIB transactions under an automatic purchase plan agreement (“APPA”) dated November 26, 2019. The APPA will allow National Bank Financial 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 Financial based on direction received from High Arctic prior to any blackout period and in accordance with all regulatory and securities law.
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 November 18, 2019 and under that program, a total of 1,643,335 common shares at a weighted average price of $3.65 per share have been repurchased for cancellation.
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 is a market leader providing drilling and specialized well completion services and supplies rig matting, camps and drilling support equipment on a rental basis in Papua New Guinea. The Canadian and US operations 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 and the United States.