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RED DEER, AB, March 21, 2012 /CNW/ - High Arctic Energy Services Inc. (TSX: HWO) ("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 2,481,013 common shares, representing approximately 5% of the currently issued and outstanding common shares of the Corporation. As of today's date, there are 49,620,262 common shares outstanding. On any trading day, High Arctic will not purchase more than 6,248 common shares, other than through block purchase exceptions.
The Corporation is authorized to make purchases during the period from March 23, 2012 to March 22, 2013, 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, at the prevailing market price at the time of the transaction. The Corporation has appointed TD Securities Inc. as its broker to conduct the NCIB transactions. All common shares acquired under the NCIB will be cancelled. During the 12 months preceding March 23, 2012, the Corporation did not repurchase any common shares.
Management of 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.
This news release may contain forward-looking statements relating to expected future events and anticipated financial and operating results of the Corporation, including for the fourth quarter and year ended December 31, 2011, that involve risks and uncertainties. Actual results may differ materially from management expectations, as projected in such forward-looking statements for a variety of reasons, including unanticipated adjustments to the fourth quarter and year-end operating results which could occur as a result of the year-end audit process, market and general economic conditions and the risks and uncertainties detailed in both the Corporation's Management Discussion and Analysis for the year ended December 31, 2011 and the Annual Information Form for the year ended December 31, 2010 found on SEDAR (www.sedar.com). Due to the potential impact of these factors, the Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.
About High Arctic
The Corporation, through its subsidiaries, is a provider of specialized oilfield equipment and services, including drilling, completion and workover operations. Based in Red Deer, Alberta, High Arctic has domestic operations throughout Western Canada and international operations primarily in Papua New Guinea.
For further information:
Chief Financial Officer
403 340 9825