CALGARY, Alberta, Nov. 01, 2018 (GLOBE NEWSWIRE) -- Seven Generations Energy Ltd.'s notice of intention to proceed with its previously announced normal course issuer bid (NCIB) for its class A common shares (common shares) has been accepted by the Toronto Stock Exchange (TSX).
“We believe our shares are trading at a substantial discount to intrinsic value. Our planned share repurchase program represents an attractive way to create value for our shareholders,” said Marty Proctor, 7G’s President & Chief Executive Officer.
Under the NCIB, Seven Generations may purchase up to 18,115,666 common shares, representing five percent of the 362,313,320 common shares that were issued and outstanding as at October 30, 2018, during the 12-month period commencing November 5, 2018 and ending November 4, 2019. Under the NCIB, other than purchases made under block purchase exemptions, 7G may purchase up to 274,218 common shares on the TSX during any trading day, which represents approximately 25 percent of the average daily trading volume on the TSX for the most recently completed six calendar months prior to the TSX’s acceptance of the notice of the NCIB.
Any purchases made under the NCIB will be made by Seven Generations at then-prevailing market prices through the facilities of the TSX and/or alternative Canadian trading systems. The actual number of common shares purchased pursuant to the NCIB and the timing of such purchases will be determined by Seven Generations. Although 7G intends to purchase common shares under the NCIB, there can be no assurances that any such purchases will be completed. Any common shares purchased under the NCIB will be cancelled.
In connection with the NCIB, Seven Generations will enter into an automatic securities purchase plan (ASPP) with a designated broker. The ASPP is intended to allow for the purchase of common shares during certain pre-determined blackout periods during which 7G would ordinarily not be permitted to purchase common shares. Purchases under the ASPP will be determined by the designated broker in its sole discretion based on the purchasing parameters set by 7G in accordance with the rules of the TSX, applicable securities laws and the terms of the ASPP. The ASPP has been pre-cleared by the TSX and will become effective on November 5, 2018, concurrently with the commencement of the NCIB. Outside of blackout periods, common shares may be purchased under the NCIB based on management’s discretion, in compliance with TSX rules and applicable securities laws. All purchases made under the ASPP will be included in computing the number of common shares purchased under the NCIB.
Seven Generations Energy
Seven Generations Energy is a low-supply cost energy producer dedicated to stakeholder service, responsible development and generating strong returns from its liquids-rich Kakwa River Project in northwest Alberta. 7G’s corporate office is in Calgary, its operations headquarters is in Grande Prairie and its shares trade on the TSX under the symbol VII.
Further information on Seven Generations is available on the company’s website: www.7genergy.com, or by contacting:
Marty Proctor, President & CEO
Derek Aylesworth, Chief Financial Officer
Brian Newmarch, Vice President, Capital Markets
Ryan Galloway, Investor Relations Manager
Alan Boras, Director, Communications & Stakeholder Relations
Seven Generations Energy Ltd.
Suite 4400, 525 - 8th Avenue SW
Calgary, AB T2P 1G1
This news release contains certain forward-looking information and statements that involve various risks, uncertainties and other factors. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “should”, “believe”, “plans”, and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this news release contains forward-looking information and statements pertaining to the NCIB, ASPP and value creation for shareholders expected to result therefrom.
Readers are cautioned against unduly relying on forward-looking statements which, by their nature, involve numerous assumptions, risks and uncertainties that may cause such statements not to occur, or results to differ materially from those expressed or implied. Risks and uncertainties that may affect these business outcomes include the risks and uncertainties impacting 7G’s business as are described in 7G’s Annual Information Form for the year ended December 31, 2017, dated March 13, 2018, which is available on SEDAR at www.sedar.com.
The forward-looking statements contained in this news release speak only as of the date hereof, and 7G does not assume any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws.
Seven Generations Energy Ltd. is referred to herein as “Seven Generations”, “Seven Generations Energy”, “7G” and the “company”.