CALGARY, May 17, 2013 /CNW/ - Bonnett's Energy Corp. (TSX: BT) announced today that the Toronto Stock Exchange (the "TSX") has accepted notice of the Corporation's intention to make a normal course issuer bid through the facilities of the TSX.
The bid will permit the Corporation to purchase for cancellation up to 518,700 common shares of the Corporation, representing approximately 10% of the Corporation's public float of 5,187,007 common shares and which represents approximately 3.6% of the Corporation's issued and outstanding common shares (being 14,570,243 common shares as at May 13, 2013). Daily purchases will be limited to 6,672 common shares, other than block purchases.
Purchases pursuant to the normal course issuer bid may commence on or about May 22, 2013 and will terminate on or about May 21, 2014 or on such earlier date as the Corporation may complete its purchases or otherwise terminate the bid. The Corporation will pay market price at the time of acquisition for any common shares purchased under the normal course issuer bid.
During the period April 18, 2012 to April 17, 2013, the Corporation purchased 184,600 common shares pursuant to a normal course issuer bid through the facilities of the TSX at a volume weighted average price of $4.3578 per share.
The board of directors of the Corporation believes that the Corporation's common shares have been trading in a price range which does not adequately reflect their value in relation to the Corporation's business and its future business prospects. As a result, depending upon future price movements and other factors, the board of directors of the Corporation believes that the repurchases of the common shares of the Corporation are in the best interest of the Corporation and represent an appropriate use of corporate funds.
Bonnett's Energy Corp. is a diversified corporation, providing wireline, frac-flowback and testing, fishing, and swabbing services in the Western Canadian Sedimentary Basin. Bonnett's Energy Corp. is a publicly traded Canadian corporation listed on the Toronto Stock Exchange under the symbol "BT".
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS
This press release contains forward-looking information within the meaning of applicable Canadian securities law. This information is subject to certain risks and uncertainties that could cause actual results to differ materially from those included in the forward-looking information. When used in this document, the words "plan", "anticipate", "believe", "expect", "seek", "propose", "estimate", "intend" and similar expressions, as well as future or conditional verbs such as "may", "would", "could", and "will", as they relate to the Corporation, are intended to identify forward-looking information. Such information reflects the Corporation's current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, without limitation, those described in the Corporation's MD&A for the year ended December 31, 2012, under the heading "Risks and Uncertainties", and "Outlook". Forward-looking information concerning proposed purchases of common shares are based upon the current expectations of the Corporation in the current business environment. Although management of the Corporation believes that the expectations reflected in such forward-looking information are reasonable, there can be no assurance that such expectations will prove to have been correct because, should one or more of the enumerated risks or uncertainties materialize, or should the assumptions underlying forward-looking information prove incorrect, actual results may vary materially from those intended, planned, anticipated, believed, estimated or expected. Except where required by law, the Corporation does not assume any obligation to update forward-looking information if conditions or opinions should change. Readers should not place undue reliance on forward-looking information. All of the forward-looking information of the Corporation contained in this press release is expressly qualified, in their entirety, by this cautionary statement. Additional information related to the Corporation, including the Corporation's annual information form, is available under the Corporation's profile on SEDAR at www.sedar.com.
SOURCE: Bonnett's Energy Corp.
For further information:
Additional information can be obtained by contacting Bonnett's Energy Corp., 65007 43 Hwy., Country of Grande Prairie No. 1, Alberta, T8V 5E7. Information is also available on the Corporation's website at www.bonnettsenergy.com or by contacting Murray Toews, Chief Executive Officer at (780) 513-3400 or David Ross, Chief Financial Officer at (403) 264-3010, Fax: (403) 693-0093, E-mail: email@example.com