CALGARY, AB, July 13, 2023 /CNW/ – Cathedral Energy Services Ltd. (TSX: CET) (“Cathedral” or the “Company“) is pleased to announce that it has filed a notice with the Toronto Stock Exchange (“TSX“) and received approval to purchase through the facilities of the TSX, other designated exchanges and/or alternative Canadian trading systems, up to 12,160,008, or 5%, of the 243,200,173 issued and outstanding Common Shares of the Company (“Common Shares“) as of July 3, 2023. The price the Company will pay for any Common Shares acquired will be the market price at the time of acquisition. Purchases under the normal course issuer bid (“NCIB“) will be made by the Company and the Common Shares acquired shall be cancelled. Purchases may commence on July 17, 2023, and will terminate no later than July 16, 2024. The actual number of Common Shares purchased under the NCIB, the timing of purchases and the price at which the Common Shares are purchased will depend on management discretion based on factors such as market conditions.
The average daily trading volume (“ADTV“) of the Company’s Shares on the TSX over the six months ending June 30, 2023, was 398,486 Shares. Under TSX rules, the Company is entitled to purchase up to the greater of: 25% of the ADTV of the respective class of shares; or 1,000 shares on any trading day; or a larger amount of shares per calendar week, subject to the maximum number that may be acquired under the NCIB, if the transaction meets the block purchase exception under TSX rules. Accordingly, unless a block purchase meeting the block purchase exception under TSX rules is made, the Company is entitled to purchase up to 99,621 Common Shares on any trading day.
In connection with the NCIB, the Company has established an automatic securities purchase plan (“the Plan“) for the Common Shares. The Plan was established to provide standard instructions regarding how the Common Shares are to be repurchased under the NCIB. Accordingly, the Company may repurchase its securities under the Plan on any trading day during the NCIB including during regulatory restrictions or self-imposed trading blackout periods. The Plan will commence on July 17, 2023 and terminate on July 16, 2024. The Company may otherwise vary, suspend or terminate the Plan only if it does not have material non-public information and the decision to vary, suspend or terminate the Plan is not taken during a self-imposed trading blackout period. The Plan constitutes an “automatic plan” for purposes of applicable Canadian securities legislation and has been reviewed by the TSX.
The Board of Directors and senior management of the Company are of the opinion that from time to time the purchase of its Common Shares at the prevailing market price is in the best interest of the Company and its shareholders. By making such repurchases, the number of Common Shares in circulation will be reduced and the proportionate interest of remaining shareholders of the Company in the share capital of the Company will be increased on pro rata basis.
Cathedral Energy Services Ltd., based in Calgary, Alberta is incorporated under the Business Corporations Act (Alberta) and operates in the U.S. under “Discovery Downhole Services”, “Altitude Energy Partners” and “Rime Downhole Technologies”. Cathedral is publicly-traded on the Toronto Stock Exchange under the symbol “CET”. Cathedral is a trusted partner to North American energy companies requiring high performance directional drilling services. We work in partnership with our customers to tailor our equipment and expertise to meet their specific geographical and technical needs. Our experience, technologies and responsive personnel enable our customers to achieve higher efficiencies and lower project costs. For more information, visit www.cathedralenergyservices.com
This news release contains statements and information that may constitute “forward-looking information” within the meaning of applicable securities legislation, including statements identified by the use of words such as “will”, “expects”, “positions”, “believe”, “potential” and similar words, including negatives thereof, or other similar expressions concerning matters that are not historical facts. Forward-looking information in this news release includes, but is not limited to, statements regarding Cathedral’s expectations regarding the Company’s plans to purchase for cancellation shares under the normal course issuer bid. Such forward-looking information is based on various assumptions that may prove to be incorrect, including, but not limited to, assumptions with respect to: regulatory approval, market and economic conditions, and availability of sellers. Although the Company believes that such assumptions are reasonable, the Company can give no assurance that such forward-looking statements will prove to be correct or that any of the events anticipated by such forward-looking statements will occur, or if any of them do so, what benefits the Company will derive there from. Actual results could differ materially due to a number of factors and risks including, but not limited to market and economic conditions, availability of sellers and changes in laws and regulations. Additional information regarding risks and uncertainties of the Company’s business are contained under the heading “Risk Factors” in the Company’s annual information form for the financial year ended December 31, 2022 and the Company’s other public filings which are available under the Company’s profile on SEDAR at www.sedar.com. The forward-looking information included in this news release is made as of the date of this news release and the Company does not undertake an obligation to publicly update such forward-looking information to reflect new information, future events or otherwise, except as required by applicable law.
SOURCE Cathedral Energy Services Ltd.
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