CALGARY, Sept. 23, 2019 /CNW/ – Gear Energy Ltd. (“Gear“) (TSX: GXE) is pleased to announce that the Toronto Stock Exchange (“TSX“) has granted approval for Gear to commence a normal course issuer bid (the “NCIB“).
Under the NCIB, Gear may purchase for cancellation up to 10,954,673 common shares (the “Shares“) of Gear, representing approximately 5% of its 219,093,452 issued and outstanding Shares as at September 20, 2019. The total number of Shares that Gear is permitted to purchase is subject to a daily purchase limit of 58,069 Shares, representing 25% of the average daily trading volume of 232,278 Shares on the TSX calculated for the six-month period ended August 31, 2019; however, Gear may make one block purchase per calendar week which exceeds the daily repurchase restrictions. Under the current terms of Gear’s credit facilities, Gear can initially purchase Shares with an aggregate value of $1.5 million without the consent of Gear’s lenders. With an existing strong balance sheet, potential cost savings from the 2019 capital budget and the forecast of continued strength in funds from operations, Gear intends to seek consent from its lenders for additional share purchases in the future.
The NCIB is expected to commence on September 25, 2019 and will terminate on the earlier of: (i) the date on which the issuer has acquired all Shares sought pursuant to the NCIB; or (ii) to September 24, 2020 unless earlier terminated at the option of the issuer, upon prior notice being given to the TSX. The Shares will be purchased on behalf of Gear by a registered broker through the facilities of the TSX and through other alternative Canadian trading platforms at the prevailing market price at the time of such transaction.
The actual number of Shares purchased under the NCIB, the timing of purchases, and the price at which the Shares will be purchased, will depend on future market conditions.
Gear believes that, from time to time, the market price of the Shares may not fully reflect the underlying value of the Shares and at such times the purchase of Shares would be in the best interests of Gear. As a result of such purchases, the number of issued Shares will be decreased and, consequently, the proportionate share interest of all remaining Shareholders will be increased on a pro rata basis.
ABOUT GEAR ENERGY LTD.
Gear Energy Ltd. is a Canadian exploration and production company with heavy and light oil production in Central Alberta, West Central Saskatchewan, and Southeast Saskatchewan. Gear trades on the Toronto Stock Exchange under the symbol GXE.