Normal Course Issuer BidApr 02, 2009 16:30 ET
Wenzel Downhole Tools Ltd. Announces Normal Course Issuer Bid
CALGARY, ALBERTA--(Marketwire - April 2, 2009) -
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Wenzel Downhole Tools Ltd. ("Wenzel") (TSX:WZL) announced todaythat the Toronto Stock Exchange (the "TSX") has accepted a notice filedby Wenzel of its intention to make a normal course issuer bid throughthe facilities of the TSX (the "NCIB").
Pursuant to the NCIB, Wenzel intends to purchase for cancellationup to 2,065,380 common shares ("Common Shares") in capital of Wenzel,being 10% of its public float of 20,653,801 Common Shares as of March31, 2009 (or approximately 6.7% of its 30,644,524 issued andoutstanding Common Shares as of March 31, 2009). Purchase of the CommonShares will be made on the open market through the facility of the TSX.The price which Wenzel will pay for any Common Shares purchasedpursuant to the NCIB will be the prevailing market price of the CommonShares on the TSX at the time of such purchase. The actual number ofCommon Shares that may be purchased for cancellation and the timing ofany such purchases will be determined by Wenzel, subject to thepolicies of the TSX. The NCIB will commence on April 3, 2009 and end nolater than April 2, 2010. Any Common Shares purchased during the NCIBwill be cancelled.
Between November 15, 2007 and November 14, 2008, Wenzel purchasedan aggregate of 16,500 Common Shares at a weighted average price of$0.65 per Common Share. The average daily trading volume of the CommonShares on the TSX over the last six completed calendar months (the"ADTV") is 14,333 Common Shares. Consequently, under the policies ofthe TSX, Wenzel will have the right to purchase, during any one tradingday, a maximum of 3,583 Common Shares, representing 25% of the ADTV. Inaddition, Wenzel may make, once per calendar week, a block purchase (assuch term is defined in the TSX Company Manual) of Common Shares notdirectly or indirectly owned by insiders of Wenzel, in accordance withthe policies of the TSX.
Wenzel has retained Fraser Mackenzie Limited, of Toronto, Ontario as its broker to conduct the NCIB on behalf of Wenzel.
The management of Wenzel believe that, from time to time, themarket price of the Common Shares may not fully reflect the underlyingvalue of the Common Shares in relation to the business of Wenzel andits future business prospects and that at such times the purchase ofCommon Shares by Wenzel would be in the best interests of all theshareholders of Wenzel. Such purchases will increase the proportionateinterest of all remaining shareholders and may increase liquidity forthose shareholders wishing to sell their Common Shares.
About Wenzel Downhole Tools Ltd.
Wenzel Downhole Tools Ltd. is a manufacturer, seller and renter ofdrilling tools used in oil and gas exploration. Wenzel's Canadiansales, manufacturing and servicing facilities are located in Edmonton,Alberta and its U.S. servicing facilities are located in Conroe, Texasand Casper, Wyoming. Wenzel's main corporate office is located inCalgary, Alberta and it has U.S. sales offices in Conroe, Casper andOklahoma City, Oklahoma.
Forward-Looking Information
This news release may contain forward-looking information includingopinions, assumptions, estimates and management's views andexpectations. When used in this document, the words "believe," "may,","will" and similar expressions are intended to be among the statementsthat identify forward-looking statements. Forward-looking statementsare subject to a wide range of risks and uncertainties, and althoughWenzel believes that the expectations represented by suchforward-looking statements are reasonable, there can be no assurancethat such expectations will be realized. Any number of importantfactors could cause actual results to differ materially from those inthe forward-looking statements including, but not limited to the stateof domestic capital markets, delays resulting from inability to obtainrequired regulatory approvals, changes in general economic conditionsand other factors more fully described from time to time in the reportsand filings made by Wenzel with securities regulatory authorities.Readers are cautioned not to place undue reliance on forward-lookingstatements, as no assurances can be given as to future results, levelsof activity or achievements. Except as required by applicablesecurities laws, Wenzel does not undertake any obligation to publiclyupdate or revise any forward-looking statements.
This news release does not constitute an offer for or solicitationof the Common Shares in any jurisdiction. Any such offer orsolicitation will be made only by formal offer and only in thosejurisdictions where Wenzel may legally do so.
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