MarketLens 08:13 AM EDT, 06/05/2023 (MT Newswires) -- Geodrill Limited (TSX: GEO), a West African based drilling company, announced Monday that the Toronto Stock Exchange has accepted its notice of intention to renew its normal course issuer bid to purchase outstanding ordinary shares of the company on the open market in accordance with the rules of the TSX.
According to a statement, any such purchases will occur from time to time and in aggregate will be up to 2,343,820 Ordinary Shares (being approximately 5% of the issued and outstanding Ordinary Shares of the company) over a 12-month period commencing on June 7, 2023 and terminating on June 6, 2024. The New NCIB Program was approved by the shareholders of the company on May 9, 2023. As of June 2, 2023, under the previous notice of intention to conduct a normal course issuer bid, pursuant to which company sought and received approval from the TSX to purchase up to 2,274,570 Ordinary Shares for the period of June 7, 2022 to June 6, 2023, the company has not repurchased any Ordinary Shares on the open market. As of June 2, 2023, Geodrill had 46,921,400 Ordinary Shares issued and outstanding and 15,916,554 Ordinary Shares in the public float.
Any repurchases under the New NCIB Program will be made in Canada through the facilities of the TSX or alternative Canadian trading systems. Geodrill will pay the prevailing market price at the time of purchase (with a maximum purchase price of not more than 105% above the 5 day VWAP) or such other price as may be permitted by the TSX. The actual number of Ordinary Shares repurchased under the New NCIB Program and the timing of such repurchases will be at Geodrill's discretion and shall be subject to the limitations set out in the TSX Company Manual. Daily purchases on the TSX will be limited to 5,041 Ordinary Shares, representing 25% of 20,167 (the average daily trading volume on the TSX for the prior six months ending May 31, 2023 ), other than block purchase exceptions. The Ordinary Shares repurchased by Geodrill will be cancelled.
Management and the Board of Directors of Geodrill believes that the underlying value of the company may not be reflected in the market price of the Ordinary Shares from time to time and that, accordingly, the purchase of Ordinary Shares will increase the proportionate interest in the company of, and be advantageous to, all remaining shareholders of the company.