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CALGARY, Jan. 6, 2016 /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 2,772,136 common shares, representing approximately 10% of the public float of High Arctic, being 27,721,368 as of January 5, 2016. As of January 5, 2016, there were 54,368,469 common shares outstanding. The maximum number of common shares that High Arctic may purchase on any given day is 17,154 common shares, which is 25% of the Corporation's average daily trading volume on the TSX for the last six months of 2015 adjusted for the Corporation's NCIB during the same period. 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 January 12, 2016 to January 11, 2017, 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 AltaCorp Capital Inc. ("AltaCorp") as its broker to conduct the NCIB transactions under an automatic purchase plan agreement ("APPA") dated January 6, 2016. The APPA will allow AltaCorp 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 AltaCorp based on direction received from High Arctic prior to any blackout period and in accordance with all regulatory and securities law.
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. The Corporation's previous NCIB expires on January 11, 2016 and under that program, a total of 1,590,483 common shares at a weighted average price of $3.63 per share have been repurchased for cancellation as of the close of markets on January 4, 2016.
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's largest operation is in Papua New Guinea where it provides drilling and specialized well completion services and supplies rig matting, camps and drilling support equipment on a rental basis. The Canadian operation provides snubbing services, nitrogen supplies and equipment on a rental basis to a large number of oil and natural gas exploration and production companies operating in Western Canada.
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this press release contains forward-looking statements and information relating to liquidity and availability of funding. These forward-looking statements and information are based on certain key expectations and assumptions made by High Arctic. Although High Arctic believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information as High Arctic cannot give any assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, prevailing economic conditions; commodity prices; sourcing, pricing; dependence on major customers; exchange rate fluctuations; marketing; loss of markets; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals; and changes in legislation, including but not limited to tax laws, royalties and environmental regulations.
Readers are cautioned that the foregoing list of risks and uncertainties is not exhaustive. Additional information on these and other risk factors that could affect High Arctic's operations or financial results are included in High Arctic's annual information form and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements and information contained in this press release are made as of the date hereof and High Arctic does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE High Arctic Energy Services Inc.
For further information: Tim Braun, Chief Executive Officer, Phone: 403-508-7836 ext 105, Email: [email protected]; Brian Peters, Chief Financial Officer, Phone: 403-508-7836 ext 103, Email: [email protected]