Inaugural Normal Course Issuer Bid CALGARY, Alberta, Nov. 22, 2021 (GLOBE NEWSWIRE) -- (PIPE – TSX) Pipestone Energy Corp. (“Pipestone” or the “Company”) is pleased to announce the Toronto Stock Exchange (the “TSX”) has accepted the notice filed by the Company to implement a normal course issuer bid (the “NCIB”).
The NCIB allows Pipestone to purchase up to 9,598,347 common shares (“Common Shares”), representing 5% of its 191,966,942 outstanding Common Shares as at November 12, 2021. The NCIB is scheduled to commence on November 25, 2021 and is due to expire no later than November 24, 2022. Under the NCIB, Common Shares may be repurchased in open market transactions on the TSX and other alternative trading platforms in Canada and in accordance with the rules of the TSX governing NCIB’s.
The total number of Common Shares Pipestone is permitted to purchase is subject to a daily purchase limit of 55,099 Common Shares, representing 25% of the average trading volume of 220,397 Common Shares on the TSX calculated for the six-month period ended October 31, 2021; however, Pipestone 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 upon their purchase by the Company.
Pipestone intends to fund the purchases out of its available resources and is implementing the NCIB as part of its free cash flow allocation strategy. Pipestone believes that, at times, the prevailing share price may not reflect the underlying value of the Common Shares and the repurchase of Common Shares represents an opportunity to improve per share metrics as part of the Company’s commitment to shareholder returns. The Company plans on repurchasing Common Shares under the NCIB following its commencement date.
The Company intends to enter into an automatic securities purchase plan effective November 25, 2021, under which its broker may purchase Common Shares in connection with the NCIB. The plan will contain a prearranged set of criteria in accordance with which its broker may make Common Share purchases. These strict parameters enable the purchase of Common Shares during times when it would ordinarily not be permitted due to self-imposed blackout periods, insider trading rules or otherwise. Such plan is adopted in accordance with applicable Canadian securities laws. Outside of blackout periods, Common Shares may be purchased under the NCIB in accordance with management’s discretion.
https://www.globenewswire.com/news-release/2021/11/22/2338873/0/en/Pipestone-Energy-Corp-Announces-Inaugural-Normal-Course-Issuer-Bid.html