CALGARY, June 7, 2012 /CNW/ - Shona Energy Company, Inc. (TSXV: SHO) (OTCQX: SHOAF) ("Shona" or "the Company"), an international oil and natural gas exploration, development and production company focusing on South America, today announced that the TSX Venture Exchange (the "Exchange") has accepted its notice to make a normal course issuer bid ("NCIB") to purchase outstanding Class A Common Shares ("Common Shares") on the open market, in accordance with the rules of the Exchange.
As per the Exchange approval, Shona is authorized and intends to purchase up to 15,640,750 Common Shares representing 10% percent of Shona's public float (as defined in the regulations and policies of the Exchange). As of May 29, 2012 there are 180,594,389 Class A voting Common Shares and 54,173,451 Class B non-voting common shares outstanding.
Shona has engaged AltaCorp Capital Inc. ("AltaCorp") to act on the Company's behalf to make purchases pursuant to the NCIB. Shona is authorized to make purchases during the period of June 7, 2012 to June 6, 2013 or until such earlier time as the NCIB is completed or terminated at the option of Shona. Any Common Shares Shona purchases under the NCIB will be purchased on the open market through the facilities of the Exchange at the prevailing market price at the time of the transaction. Common Shares acquired under the NCIB will be placed into treasury and reserved for future use at Shona's discretion.
Shona's Board of Directors believes, from time to time, the market price of its Common Shares may not reflect their underlying value. Shona's cash flow capability and debt‐free balance sheet provide the opportunity to capitalize on the current valuation of Shona in the market which, in the Board's opinion, significantly discounts the value and potential of the Company's asset base. The Company's cash on hand as well as cash from operations will fund the NCIB program, and continue to support Shona's expansion and growth opportunities.
In connection with the NCIB, Shona has entered into an automatic share purchase plan ("Plan") with AltaCorp in order to facilitate purchases of Common Shares. Under the Plan, AltaCorp may purchase Common Shares on Shona's behalf under the NCIB at times when Shona would ordinarily not be permitted to purchase shares due to self-imposed blackout periods or otherwise. The Plan will be implemented as of June 7, 2012, and purchases will be made by AltaCorp based upon the parameters prescribed by the Exchange, applicable laws and the terms and conditions of the Plan, until such time as the Plan is terminated at the option of Shona.
Shona is an international oil and natural gas exploration, development and production company focusing on South America, specifically Colombia and Peru. The Company's assets currently include interests in the Company-operated Esperanza block located in Colombia's Lower Magdalena Basin, the non-operated Serrania, Los Picachos and Macaya Blocks in Colombia's Caguan Basin, and the non-operated Block 102 in Peru's Maranon Basin. The Common Shares of the Company trade on the TSX Venture Exchange under the stock symbol "SHO" and the OTCQX International under the stock symbol "SHOAF". More information on the Company is available at www.shonaenergy.com.
The securities of Shona have not been and will not be registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
For further information:
please contact either of the following individuals:
David Gian, Treasurer & Investor Relations
Shona Energy Company, Inc.
Shetal Mentlewski, VP Admin & Legal
Shona Energy Company, Inc.