CALGARY, May 25, 2020 /CNW/ - SECURE Energy Services
Inc. ("SECURE" or the "Corporation") (TSX – SES) announced today
that the Toronto Stock Exchange ("TSX") has accepted for filing the
Corporation's notice of intention to make a normal course issuer
bid ("NCIB"). The NCIB effectively renews the existing NCIB, which
is scheduled to end on May 27,
2020.
Pursuant to the renewed NCIB, SECURE may repurchase from time to
time up to a maximum of 10,796,069 common shares of the Corporation
("common shares"), representing 10% of the Corporation's public
float of 107,960,696 common shares at May 15, 2020.
Purchases under the NCIB may be made through open market
transactions on the TSX and any alternative Canadian trading
platforms on which the common shares are traded, based on the
prevailing market price, at such times and in such quantities as
the Corporation may determine, subject to applicable regulatory
restrictions. Under TSX rules, not more than 185,743 common
shares (being 25% of the average daily trading volume on the TSX of
742,975 common shares for the six months ended April 2020) can be purchased on the TSX on any
single trading day under the NCIB, except that one block purchase
in excess of the daily maximum is permitted per calendar
week. Any common shares purchased under the NCIB will be
cancelled.
The renewed NCIB period will commence on May 28, 2020, and end on May 27, 2021, or such earlier date as the NCIB is
completed or is terminated at the Corporation's election.
Transactions under the NCIB will depend on future market
conditions. SECURE retains discretion whether to make
purchases under the NCIB, and to determine the timing, amount and
acceptable price of any such purchases, subject at all times to
applicable TSX and other regulatory requirements.
The renewed NCIB provides the Corporation with an additional
capital allocation alternative to acquire common shares under the
appropriate circumstances, with a view to long-term shareholder
value. The Board of Directors and senior management believe
that, from time to time, the prevailing market price of the common
shares may not fully reflect the underlying value of SECURE's
business and future business prospects. In such circumstances, the
repurchase of common shares under the NCIB represents an attractive
investment for the Corporation and an opportunity to enhance
shareholder value.
The Corporation has appointed Raymond James Ltd. as its broker
to make any NCIB purchases on its behalf.
SECURE previously received approval from the TSX to purchase up
to 8,028,468 common shares under its existing NCIB for the
May 28, 2019 to May 27,
2020 bid period, representing approximately 5% of the number
of common shares outstanding at the time of commencement. As of
May 15, 2020, SECURE has repurchased and cancelled 3,874,500
common shares under the current NCIB through market purchases on
the TSX, at a volume-weighted average purchase price of
approximately $5.76 per share.
ABOUT SECURE ENERGY SERVICES INC.
SECURE is a publicly traded energy business listed on the
Toronto Stock Exchange providing industry leading customer
solutions to upstream oil and natural gas companies operating in
western Canada and certain regions
in the United States through its
network of midstream processing and storage
facilities, crude oil and water pipelines, and crude by rail
terminals
located throughout key resource plays in western
Canada, North Dakota and Oklahoma. SECURE's core midstream
infrastructure operations generate cash flows from oil production
processing and disposal, produced water disposal, and crude oil
storage, logistics, and marketing. SECURE also provides
comprehensive environmental and fluid management for landfill
disposal, onsite abandonment, remediation and reclamation,
drilling, completion and production operations for oil and gas
producers in western Canada.
SOURCE SECURE Energy Services Inc.