CALGARY, Aug. 27 /CNW/ - Humboldt Capital Corporation (TSX-V: HMB)
Humboldt Capital Corporation announced today that it has received approval from the TSX Venture Exchange (the "Exchange") to make a Normal Course Issuer Bid (the "Bid") to purchase for cancellation, from time to time, as it considers advisable, up to 603,930 of the issued and outstanding Common Shares (being approximately 5% of the Common Shares outstanding at August 26, 2010). Purchases will be made on the open market through the facilities of the Exchange. CIBC Wood Gundy will conduct the Bid on behalf of Humboldt. The price which Humboldt will pay for any shares purchased by it will be the prevailing market price of such shares on the Exchange at the time of such purchase.
Pursuant to Normal Course Issuer Bids, during the previous 12 months, Humboldt purchased 41,000 Common Shares at an average price of $2.10 per share.
The Bid will commence on August 31, 2010 and will terminate on August 30, 2011, or such earlier time as the applicable Bid is completed or at the option of Humboldt.
The Board of Directors of Humboldt believe that the current and recent market prices of Humboldt's shares do not give full effect to their underlying value and that, accordingly, the purchase of shares will increase the proportionate share interest of, and be advantageous to, all remaining shareholders. The normal course purchases will also afford an increased degree of liquidity to Humboldt shareholders who would like to dispose of their shares.
Allan R. Twa, a director of the Corporation, and holder of 82,287 common shares of the Corporation, has indicated to the Corporation his intention to sell his shares during the currency of the bid.
Further information regarding financial and operating results may be obtained at www.sedar.com, where the Company's MD&A and financial statements will be filed this week.
Forward-looking statements - the press release today contains "forward-looking" information. Actual results could differ materially from the conclusions, forecasts or projections in the forward-looking information. Certain material factors and assumptions were applied in drawing the conclusions or making the forecasts or projections as reflected in the forward-looking information. Additional information about the material factors that could cause actual results to differ materially from the conclusion, forecast or projection in the forward-looking information and the material factors or assumptions that were applied in drawing the conclusion or making the forecast or projection as reflected in the forward-looking information is contained in the press release.
Where amounts are expressed on a barrel of oil equivalent (boe) basis, natural gas volumes have been converted to barrels of oil at six thousand cubic feet (mcf) per barrel (bbl). Boe figures may be misleading, particularly if used in isolation. A boe conversion of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. References to oil in this discussion include crude oil and natural gas liquids (NGLs).
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE HUMBOLDT CAPITAL CORPORATION
For further information: For further information: R.W. Lamond, Chairman of the Board - or - C.A. (Tony) Teare, Executive Vice President, HUMBOLDT CAPITAL CORPORATION, Telephone: (403) 269-9889, Fax: (403) 269-9890, TSX-V: HMB