NORTHERN BLIZZARD RESOURCES INC T.NBZ

Monthly Dividend Cut in Half, Stock Repurchase

[pierrelebel]

The news today:

https://web.tmxmoney.com/article.php?newsid=8635988557967030&qm_symbol=NBZ

[ebrie014]

thats one hell of a stock repurchase plan (over 15% of F/D share count). I like this move by the company. Decreased dilution by stoppping the DRIP plan reduce excessive payout ratio and buyback shares that are trading at a steep discount. (at 4$). I can see this trade at 4$ and upwards.

[JethroBodine123]

This is exactly what needed to be done. Good move by management. They essentially removed all impediments this stock had so that now it can trade according to the price of oil. glta

[pierrelebel]

Good move except: "NGP IX Northern Blizzard S..r.l. ("NGP IX") and R/C Canada Coperatief U.A. ("R/C Canada"), the Company's significant shareholders, have indicated that they intend to tender all of their shares pursuant to the Offer.  Collectively, NGP IX and R/C Canada own 71.3% Northern Blizzard's currently issued and outstanding Shares. "

[nwahsrm]

You need to think through the implications. The major shareholders confirming that they will be tendering all their shares is the only way this plan works....

[uograd]

the math here is complicaed but the bottom line for me is why in a rising oil market would you not want to put that 75,000,000 into capital expansion instead of blowing it out to your shareholders at 4.00. sorry but this is a brutal deal for anyone who had hopes of this thing taking a major run if oil prices increase. they have just cooked their books for a small one time payout to shareholders.

[pierrelebel]

The question is:  why would the controlling shareholders be willing to sell a substantial portion of their holdings for less than 55% of book value?

[nwahsrm]

Spelling it out for everyone would ruin the fun. But that is indeed the right question. Why would two different funds step up and offer ~10% of the float (or 1/7 of their joint holdings) at $4? Things that make you go hmmmmm

[nwahsrm]

Besides killing the arbitrage opportunity... there must be more to it than that, no?

[ssyringa]

Why would they tender their shares??? 73% is a huge number ....

[ALDO76]

They’re not tendering all their 73% , they are willing to fullfil the bid which was set at 18.7M shares thats all

[ALDO76]

I think the move set by the management today ,even-though I regret wasn’t done much earlier, still its a move in the right direction, we should all not forget the big guys that has to say is the private holders with more then 71% of shares, and those guys were asking for a return, now by offering their share they are simply cashing part of the dividend received in shares without losing their