CALGARY, April 13 /CNW/ - The Corporation has filed a Notice of
Intention to Make a Normal Course Issuer Bid (the "Notice") with the
Toronto Stock Exchange (the "Exchange") pursuant to which the
Corporation indicated that it intends, subject to the receipt of
regulatory approval, to make a normal course issuer bid for certain of
its outstanding Class A Non-Voting Shares on the terms set forth in the
Notice. At the time of filing the Notice, the board of directors of the
Corporation was of the belief, and continues to be of the belief, that
the purchase of the Class A Shares from time to time at appropriate
prices will minimize any dilution resulting from the exercise of stock
options to purchase Class A Shares and is an advantageous use of the
On April 1, 2011, 16,476,629 Class A Shares were outstanding. Under the
rules of the Exchange, the Corporation could have applied to the
Exchange for approval to purchase up to 823,831 Class A Shares of the
Corporation, being approximately 5% of the Class A Shares outstanding
as at April 1, 2011. As set forth in the Notice, the Corporation has
sought approval to, and intends to acquire no more than 494,298 Class A
Shares being 3.0% of the Class A Shares issued and outstanding as of
April 1, 2011. The aggregate number of Class A Shares that the
Corporation may purchase under the bid during any trading day is
subject to a maximum daily purchase limit of 1,596 Class A Shares
(being 25% of the average daily trading volume for the six month period
preceding the date hereof). Exceptions may be made to this daily
purchase limit in accordance with the "block purchase" exception set
forth in the policies of the Exchange.
Any shares purchased pursuant to the Notice will be cancelled. Shares
will be purchased at the market price of the shares at the time of
purchase and will be purchased on behalf of the Corporation by a
registered investment dealer through the facilities of the Exchange and
in accordance with Exchange requirements. The funding for any purchase
of Class A Shares pursuant to the normal course issuer bid will be
financed out of working capital of the Corporation.
The average daily trading volume for the Class A Shares for the six
month period preceding the date hereof was 6,385. The Corporation
purchased 158,104 Class A Shares at an average trading price of $8.53
during the most recent twelve month period preceding the date hereof
pursuant to a normal course issuer bid which commenced on October 8,
2009 and expired on October 7, 2010. All of such purchases were made by
means of open market transactions through the facilities of the
Exchange. Trustees under the pension plans of affiliates of the
Corporation purchased no Class A Shares during the 12 month period
preceding the date hereof.
A copy of the Notice may be obtained by any shareholder without charge,
by contacting the Secretary/Treasurer of the Corporation at the head
office of the Corporation.
AKITA Drilling Ltd. is an Alberta Company engaged in the contract
drilling business and its outstanding Class A Non-Voting Shares are
listed on the Toronto Stock Exchange under the symbol "AKT.A".
SOURCE AKITA Drilling Ltd.
For further information:
Vice President, Finance and Chief Financial Officer
AKITA Drilling Ltd.