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Baytex Energy Corp T.BTE

Alternate Symbol(s):  BTE

Baytex Energy Corp. is a Canada-based energy company. The Company is engaged in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. Its crude oil and natural gas operations are organized into three main operating areas: Light Oil USA (Eagle Ford), Light Oil Canada (Pembina Duvernay / Viking) and Heavy Oil Canada (Peace River / Peavine / Lloydminster). Its Eagle Ford assets are located in the core of the liquids-rich Eagle Ford shale in South Texas. The Eagle Ford shale covers approximately 269,000 gross acres of crude oil operations. Its Viking assets are located in the Dodsland area in southwest Saskatchewan and in the Esther area of southeastern Alberta. It also holds 100% working interest land position in the East Duvernay resource play in central Alberta.


TSX:BTE - Post by User

Comment by BayStreetWolfTOon May 12, 2022 5:17pm
151 Views
Post# 34679524

RE:NCIB?

RE:NCIB?Fortune, just me but maybe try a different approach...try option #2...also are you a long-term holder? If so why does this process bug you? 


Instead of this....which was the first option #1.
"Why turn the NCIB over to banksters.  Is it too hard to go into the market and buy stock and inform us of the number of shares retired weekly.  This is just slack shady way things are done now days.

Try this.....option #2
I did some due diligence and Baytex mentioned in the NCIB they signed an ASPP with RBC. Is this normal? Do other companies do this? What could be some of those reasons?


Now to answer option #2

Part A: Yes, ASPP's are quite standard here are a few examples

https://www.globenewswire.com/news-release/2020/11/09/2122560/0/en/Stantec-announces-renewal-of-Normal-Course-Issuer-Bid-and-Automatic-Share-Purchase-Plan.html

https://www.algonet.com/the-company/news/news-release/?news-release-id=6984

https://www.igmfinancial.com/content/dam/igm/en/news/2022/igm-ncib-approval-en.pdf


Part B: What could be some of those reasons?

Automatic Securities Purchase Plans
 
Purchases of securities by an issuer under an NCIB during a period where the issuer has knowledge of material undisclosed information relating to it or its material subsidiaries should not take place. During the COVID-19 pandemic, issuers will likely face increased challenges of operating an NCIB as issuers are always in peril of entering into a blackout. To address this, some issuers may choose to set up an automatic securities purchase plan (ASPP) in order to be able to purchase securities during these periods; however ASPPs are not without their own potential issues.
 
OSC Staff Notice 55-701 Automatic Securities Disposition Plans and Automatic Securities Purchase Plans clarifies that an ASPP will generally satisfy the exemption from insider trading prohibitions provided that the plan is truly “automatic”, meaning that, in the case of an NCIB:

The issuer does not have decision-making ability over the trading of securities governed by the ASPP and cannot make “discrete investment decisions” through the ASPP;

The issuer is not in possession of material undisclosed information at the time it enters into, amends or terminates the ASPP;

Trading parameters and other pertinent instructions are set out in a written plan document;

The ASPP contains “meaningful restrictions” on the ability of the issuer to vary, suspect or terminate the ASPP;

The ASPP prohibits a broker from consulting with the issuer regarding any purchases under the ASPP, and the issuer from disclosing information to the broker concerning the issuer that might influence the execution of the ASPP; and

The ASPP is entered into in good faith.

Given the current economic climate, some issuers may want to re-evaluate their approach to ASPPs, including amending or terminating ongoing ASPPs. The amendment and/or termination of an ASPP, as typically required under standard ASPP provisions, can only happen when issuers do not have any material undisclosed information. As discussed above, this may become an issue, given the increased risk of unplanned and/or prolonged blackout periods.

Given the current economic climate, issuers may also consider adopting, amending or terminating ongoing ASPPs. Of course, the amendment and/or termination of an ASPP, as typically required under standard ASPP provisions, can only happen when issuers do not have any material undisclosed information. This may become an issue for issuers who find themselves in a position where they want to terminate or amend an ASPP but cannot do so because of the persistent existence of material undisclosed information.


Now maybe you landed on overregulation and rules on what you can do and when and detailing when you go pee...along with taking a blood sample everytime you make a trade...the current program is used by many for good reason
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