CALGARY, March 16, 2012 /CNW/ - Insignia Energy Ltd. ("Insignia") announced today that the Toronto Stock Exchange ("TSX") has accepted Insignia's Notice of Intention to make a Normal Course Issuer Bid (the "Bid") to purchase for cancellation, from time to time, its common shares (Trading Symbol: ISN) (the "Common Shares") through the facilities of the TSX. Insignia has entered into an "automatic securities purchase plan" (as defined under applicable securities laws) with National Bank Financial Inc. (the "ASPP") for the purpose of making purchases under the Bid. Such purchases will be determined by National Bank Financial Inc. in its sole discretion, without consultation with Insignia, having regard to the price limitations, the daily purchase limitations and other terms of the ASPP and the rules of the TSX. Conducting the Bid as an ASPP allows Common Shares to be purchased at times when Insignia would otherwise be prohibited from doing so pursuant to securities laws and its internal trading policies. It is intended that a maximum of 2,948,105 Common Shares, being approximately 5% of Insignia's issued and outstanding Common Shares on the date hereof will be purchased for cancellation under the Bid. As of the date hereof, 58,962,109 Common Shares are issued and outstanding. The price at which any Common Shares will be purchased will be the prevailing market price of the Common Shares on the TSX at the time of such purchase.
The Bid will commence on March 20, 2012 and will terminate on March 19, 2013 or such earlier time as the Bid is completed or terminated in accordance with the ASPP.
Management of Insignia believes that, from time to time, the market price of the Common Shares may not fully reflect the underlying value of the Common Shares and that at such times the purchase of Common Shares would be in the best interests of Insignia. Such purchases will increase the proportionate interest of, and may be advantageous to, all remaining Common Share holders. In addition, the purchases may increase liquidity to Insignia's Common Share holders wishing to sell their Common Shares.
The actual number of Common Shares that may be purchased for cancellation and the timing of any such purchases will be determined by National Bank Financial Inc., subject to a maximum daily purchase limitation of 5,317 Common Shares which equals 25% of Insignia's average daily trading volume for the previous six months of trading (21,269 Common Shares per day).
Insignia is a Calgary-based oil and natural gas company engaged in the exploration for and the acquisition, development and production of natural gas and crude oil in western Canada. Insignia's common shares currently trade on the Toronto Stock Exchange under the symbol "ISN".
For further information:
Insignia Energy Ltd.
President and CEO