Betteryear2 wrote: CALGARY, AB, Aug. 30, 2021 /CNW/ - (TSX: ARX) ARC Resources Ltd. ("ARC" or the "Company") announced today that the Toronto Stock Exchange ("TSX") has accepted the notice filed by ARC to commence a normal course issuer bid ("NCIB"). The NCIB allows ARC to purchase up to 72,236,753 of its outstanding common shares ("Common Shares"), representing 10 per cent of the Company's public float, over a 12-month period commencing September 1, 2021.
The NCIB will complement ARC's sustainable and growing dividend in the Company's strategy to accelerate the return of capital to shareholders. ARC believes that when large dislocations exist between the share price and the intrinsic value of the business, an NCIB can increase shareholder value and per share growth in the business.
Under the NCIB, Common Shares may be purchased in open market transactions on the TSX and other alternative trading platforms in Canada and in accordance with the TSX rules for NCIBs. The NCIB will commence on September 1, 2021 and expire no later than August 31, 2022. The total number of Common Shares that ARC is permitted to purchase is subject to a daily purchase limit of 822,483 Common Shares, which represents 25 per cent of the average daily trading volume of 3,289,932 Common Shares on the TSX for the six months ended July 31, 2021; however, ARC may make one block purchase per calendar week which exceeds the daily repurchase restrictions. Any Common Shares that are purchased under the NCIB will be cancelled.
The Company has, in connection with the NCIB, entered into an automatic share purchase plan with a broker to enable ARC to provide standard instructions and to purchase Common Shares on the open market during self-imposed blackout periods. Outside of these blackout periods, Common Shares may be purchased under the NCIB in accordance with Management's discretion.
A copy of the Form 12 Notice of Intention to Make a Normal Course Issuer Bid filed by ARC with the TSX can be obtained from the Company upon request without charge.
As of the close of business on August 23, 2021, the Company had 724,952,382 Common Shares outstanding.
This news release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in any jurisdiction.