All financial figures are in Canadian dollars unless otherwise noted
CALGARY, AB, Aug. 26, 2021 /CNW/ - Gibson Energy Inc. announced today the renewal of its Normal Course Issuer Bid ("NCIB").
Gibson's Board of Directors has approved a renewal of the Company's NCIB, and the Toronto Stock Exchange (the "TSX") has accepted Gibson's notice of intention to commence its NCIB for an additional one-year period. This enables the Company to purchase and cancel up to 10%, or 11,715,229, of the public float for the issued and outstanding common shares as of August 26, 2021 over the next 12 months commencing August 31, 2021 in accordance with the applicable rules and policies of the TSX and applicable securities laws. As of the date hereof, the Company had 146,526,283 common shares issued and outstanding.
Under the NCIB, common shares may be repurchased in open market transactions on the TSX, and/or other Canadian alternative trading platforms. In accordance with the rules of the TSX governing a NCIB, the total number of common shares the Company is permitted to purchase is subject to a daily purchase limit of 118,893 common shares, representing 25% of the average daily trading volume of common shares on the TSX calculated for the six-month period ended July 31, 2021. However, the Company may make one block purchase per calendar week which exceeds the daily repurchase restriction. The NCIB will terminate at the earlier of August 30, 2022 and the date on which the maximum number of common shares that can be acquired pursuant to the NCIB have been purchased.
The price that Gibson will pay for common shares in open market transactions will be the market price at the time of purchase. Gibson continues to believe that the availability of a NCIB will enable the Company to maximize return to shareholders. The actual number of common shares that may be purchased, if any, and the timing of any such purchases, will be determined by Gibson based on a number of factors, including the continued adherence to its Financial Governing Principles. Gibson previously purchased an aggregate of 866,546 common shares at a weighted average price of $21.41 under a normal course issuer bid that commenced on August 31, 2020 and ends on August 30, 2021. The number of common shares sought and approved for purchase under such NCIB was 11,765,180 and the common shares were purchased on the open market through the facilities of the TSX and/or alternative trading platforms.
The Company has renewed its automatic purchase plan with its broker, BMO Nesbitt Burns Inc., in order to facilitate purchases of its common shares. The automatic purchase plan allows for purchases by the Company of its common shares at any time, including, without limitation, when the Company would ordinarily not be permitted to make purchases due to regulatory restriction or self-imposed blackout periods. Purchases will be made by Gibson's broker based upon the parameters prescribed by the TSX and the terms of the parties' written agreement.