Orca Exploration Group Inc. Announces Preliminary Results of Substantial Issuer Bid
TORTOLA, British Virgin Islands, March 05, 2020 (GLOBE NEWSWIRE) -- Orca Exploration Group Inc. ("Orca" or the "Company" and includes its subsidiaries and affiliates) (TSX-V: ORC.A, ORC.B) today is announcing the preliminary results of its substantial issuer bid commenced on January 28, 2020, pursuant to which the Company offered to purchase for cancellation a number of its Class B Subordinate Voting Shares ("Class B Shares") for an aggregate purchase price not to exceed CDN$50 million at a purchase price of not less than CDN$6.50 and not more than CDN$7.50 per Class B Share (the "Offer"). The Offer expired at 5:00 p.m. (Toronto time) on Wednesday March 4, 2020. All dollar amounts are in Canadian dollars.
In accordance with the terms and conditions of the Offer, and based on the preliminary results from AST Trust Company (Canada) (the "Depositary"), as depositary for the Offer, Orca expects to take up and pay for 7,692,306 Class B Shares at a price of CDN$6.50 per Class B Share, representing an aggregate purchase price of approximately CDN$50.0 million and 23.6% of the total number of Orca's issued and outstanding Class B Shares and 22.4% of the total number of Orca's issued and outstanding shares.
The full details of the Offer are described in the offer to purchase and issuer bid circular dated January 28, 2020 as well as the related letter of transmittal and notice of guaranteed delivery, copies of which were filed and are available on Orca's SEDAR profile at www.sedar.com.
An aggregate of 18,733,386 Class A Common Shares (the "Class A Shares") and Class B Shares were validly tendered and not withdrawn pursuant to auction tenders at or below the purchase price and purchase price tenders. Since the Offer was oversubscribed, it is expected that shareholders who tendered shares to the Offer will have the number of shares purchased by Orca prorated to approximately 41.0% of their successfully tendered shares following the determination of the final results of the Offer (other than "odd lot" tenders, which are not subject to proration).
After giving effect to the Offer, Orca expects to have 24,864,950 Class B Shares and 1,750,496 Class A Shares issued and outstanding.
The number of Class B Shares to be purchased, the proration factor and the purchase price referred to above are preliminary and remain subject to verification by the Depositary. Upon take up and payment of the Class B Shares purchased, Orca will release the final results, including the final proration factor.
This press release is for informational purposes only and does not constitute an offer to buy or the solicitation of an offer to sell Orca's shares.
Orca Exploration Group Inc.
Orca is an international public company engaged in natural gas development and supply in Tanzania through its subsidiary PanAfrican Energy Tanzania Limited. Orca trades on the TSX Venture Exchange under the trading symbols ORC.A and ORC.B.