Parex Resources Announces Approval of Normal Course Issuer Bid
December 18 2018 - 5:49PM
Parex Resources Inc. (“
Parex”
or
the “
Company”) (TSX:PXT) announced today
that the Toronto Stock Exchange (the "
TSX") has
approved the Company commencing a normal course issuer bid (the
"
Bid").
Pursuant to the Bid, Parex will purchase for
cancellation, from time to time, as it considers advisable, up to a
maximum of 15,041,319 common shares of the Company. The Bid
will commence on December 21, 2018 and will terminate on December
20, 2019 or such earlier time as the Bid is completed or terminated
at the option of Parex.
The maximum number of common shares to be
purchased pursuant to the Bid represents approximately 10% of the
public float, as of December 17, 2018. Purchases pursuant to the
Bid will be made on the open market through the facilities of the
TSX and/or alternative trading systems. The number of common shares
that can be purchased pursuant to the Bid is subject to a daily
maximum of 165,615 common shares (which is equal to 25% of the
average daily trading volume from June 1, 2018 to November 30,
2018). The price that Parex will pay for any common shares under
the Bid will be the prevailing market price on the TSX at the time
of such purchase. Common shares acquired under the Bid will be
cancelled.
Scotia Capital Inc. has agreed to act on the
Company's behalf to make purchases of common shares pursuant to the
Bid.
A copy of the Form 12 Notice of Intention to
Make a Normal Course Issuer Bid filed by the Company with the TSX
can be obtained from the Company upon request without charge.
Parex believes that the common shares have been
trading in a price range which does not adequately reflect their
value in relation to the Company's current operations and its
growth prospects, and that, at such times, the purchase of common
shares for cancellation will increase the proportionate interest
of, and be advantageous to, all remaining shareholders.
As of the close of business on December 17,
2018, the Company had 155,437,628 common shares issued and
outstanding and a public float of 150,413,192.
Pursuant to a previous notice of intention to
conduct a normal course issuer bid, under which the Company sought
and received approval of the TSX to purchase 7,726,077 Common
Shares for the period from September 13, 2017 to September 12,
2018, the Company purchased 2,825,335 Common Shares on the open
market at a weighted average price of $20.96 per Common Share.
This news release does not constitute an
offer to sell securities, nor is it a solicitation of an offer to
buy securities, in any jurisdiction.
For more information please
contact:
Michael KruchtenManager, Investor Relations Parex
Resources Inc. Phone: (403) 517-1733
Investor.relations@parexresources.com |
Kenneth G. Pinsky Chief Financial Officer Parex
Resources Inc. Phone: (403) 517-1729 |
Advisory on Forward Looking
Statements
Certain information regarding Parex set forth in
this document contains forward-looking statements that involve
substantial known and unknown risks and uncertainties. The use of
any of the words "plan", "expect", "intend", "believe", "should",
"anticipate" or other similar words, or statements that certain
events or conditions "may" or "will" occur are intended to identify
forward-looking statements. These statements are only
predictions and actual events or results may differ materially.
Many factors could cause Parex' actual results to differ
materially from those expressed or implied in any forward-looking
statements made by, or on behalf of, Parex. In particular,
forward-looking statements contained in this document include, but
are not limited to, statements with respect to the anticipated
advantages to shareholders of the Bid. These forward-looking
statements are subject to numerous risks and uncertainties,
including but not limited to, the risk that the anticipated
benefits of the Bid may not be achieved. Readers are cautioned that
the foregoing list of factors is not exhaustive. Although the
forward-looking statements contained in this document are based
upon assumptions which Management believes to be reasonable, the
Company cannot assure investors that actual results will be
consistent with these forward-looking statements. With respect to
forward-looking statements contained in this document, Parex has
made assumptions regarding, among other things, the ability of the
Company to achieve the benefits of the Bid. These forward-looking
statements are made as of the date of this document and Parex
disclaims any intent or obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or results or otherwise, other than as required by
applicable securities laws.
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Services or for dissemination in the United States
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