Post by
LocoToro on Sep 13, 2010 12:55am
BUYBACK!
Novus Energy Inc. (NVS:TSX-V)
Novus Energy Inc. has announced that it intends to make a normal course issuer bid through the facilities of the TSX Venture to buy up to 5,000,000 of its issued and outstanding common shares. This amount represents approximately 3% of Novus' 166.4 million issued and outstanding common shares. The bid will commence September 13, 2010 and expire September 12, 2011 and any shares acquired pursuant to the bid will be cancelled. The bid will be conducted through National Bank Financial Inc., a member of the TSX Venture.
Novus' reasoning for the normal course issuer bid is that from time to time the purchase of common shares for cancellation will increase the proportionate interest of, and be advantageous to, all remaining shareholders. In addition, any purchases made by Novus will afford increased liquidity to those shareholders of the corporation who may wish to dispose of their common shares.
QIS Capital Comments:
Given the recently declining value of Novus’ shares, we were wondering when the company might be announcing a normal course issuer bid. Novus has a significant cash position and currently carries no debt, thus granting the company an opportune time to purchase its own shares as it sees fit. The company achieved average production of 774 boe/d for the second quarter ended June 30, 2010 and was last reported to be producing 1,225 boe/d. This should have a significant impact on Q3 average production rates and associated cash flow.
Comment by
LocoToro on Sep 13, 2010 1:15am
Oil prices surge on pipeline shutdownWith no signs of immediate startup of broken Enbridge conduit to U.S. Midwest, demand for crude soarscould be time that life comes back to this stock