Trading Symbol: MAR
TORONTO, Oct. 2, 2012 /CNW/ - Marret Resource Corp. (TSX: MAR) (the "Company") is pleased to announce that it has received approval from the Toronto Stock Exchange (the "TSX") for its proposed normal course issuer bid ("NCIB") to purchase up to 1,822,008 common shares of the Company (the "Common Shares") from time to time in accordance with the normal course issuer bid procedures of the TSX representing approximately 10% of the Public Float (as that term is defined in the TSX Company Manual) as of September 20, 2012. The NCIB will remain in effect from October 4, 2012 until October 3, 2013, or an earlier date should the Company complete its purchases. All purchases under the NCIB will be made through the facilities of the TSX, Alpha and/or alternative trading systems. The price at which Marret Resource Corp. will pay for any Common Shares purchased under the NCIB will be the market price at the time of such purchase. All Common Shares acquired by the Company under the NCIB will be cancelled. As at September 20, 2012, there were 19,403,011 Common Shares outstanding, of which the Public Float is 18,220,083 Common Shares. In accordance with the rules of the TSX, Marret Resource Corp. may purchase up to 5,146 Common Shares during any given trading day, which represents 25% of its average daily trading volume, being 20,584 Common Shares for the most recently completed six calendar months prior to the TSX acceptance of the NCIB, other than pursuant to the Block Purchase Exception (as that term is defined in the TSX company manual). The brokerage firm conducting the NCIB on behalf of Marret Resource Corp. is RBC Capital Markets.
Marret Resource Corp. is making the NCIB as it is of the view that its Common Shares have been trading at a price that does not adequately reflect the asset value and future business prospects the Company. To the extent that Marret Resource Corp. purchases its Common Shares in accordance with the NCIB, the holdings of remaining shareholders will represent an increased proportion of the Common Shares outstanding and, all other things remaining equal, will result in an increased net asset value per Common Share. To date, Marret Resource Corp. has purchased an aggregate of 5,800 Common Shares at a weighted average price of $5.01 through the facilities of the TSX under the previous normal course issuer bid which came into effect on August 25, 2011 and expired on August 24, 2012.
About Marret Resource Corp.
Marret Resource Corp. is focused on natural resource lending. The Company's business is primarily directed to investing in public and private debt securities of, and making term loans (including bridge and mezzanine debt) to, issuers in a broad range of natural resource sectors, including energy, base and precious metals and other commodities, and issuers involved in exploration and development, and may also include financing other resource‐related businesses and investing in public and private equity and quasi‐equity securities. The Company seeks to generate income mainly from its lending activities, while taking advantage of additional upside through equity participation in the companies which it finances.
Marret Asset Management Inc. is responsible for implementing Marret Resource Corp.'s investment strategy and managing its investment portfolio.
About Marret Asset Management Inc.
Marret Asset Management is an employee-owned firm based in Toronto and has over $6.2 billion of assets under management. Marret Asset Management and its experienced team of investment professionals led by Barry Allan specialize exclusively in fixed income and, particularly, in high yield debt strategies.
This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, the anticipated use of the net proceeds of the Offering. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Such risks include, but are not limited to, market conditions and the other risks identified in the short form prospectus dated June 23, 2011 and the Company's annual information form, in both cases under the heading "Risk Factors". There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE: Marret Resource Corp.
For further information:
For further information about Marret Resource Corp. and its ongoing business, please contact:
Barry Allan, Chief Executive Officer