CALGARY, Alberta , Nov. 26, 2018 (GLOBE NEWSWIRE) -- Strad Energy Services Ltd. (“Strad” or the “Company”) (TSX:SDY) today announced that the Toronto Stock Exchange ("TSX") has accepted Strad's notice of intention to commence a normal course issuer bid (the "NCIB"). Under the NCIB, Strad may purchase for cancellation, from time to time, as Strad considers advisable, up to a maximum of 4,067,205 class A shares of the Company ("Common Shares"), which represents 10% of the public float of the 57,244,420 issued and outstanding Common Shares as at November 15, 2018. Purchases of Common Shares may be made on the open market 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 Common Shares that may be purchased for cancellation and the timing of any such purchases will be determined by Strad, subject to a maximum daily purchase limitation of 7,213 Common Shares which equates to 25% of Strad's average daily trading volume of 28,852 for the six months ended October 31, 2018. Strad may make one block purchase per calendar week which exceeds the daily repurchase restrictions. Any Common Shares that are purchased by Strad under the NCIB will be cancelled.
The NCIB will commence on November 28, 2018 and will terminate on November 27, 2019 or such earlier time as the NCIB is completed or terminated at the option of Strad. Strad may enter into an automatic securities purchase plan in connection with the NCIB which would permit the Company to repurchase its Common Shares during periods of blackout or other periods in which the Company would not ordinarily be permitted to repurchase its Common Shares. Such automatic securities purchase plan would be subject to certain parameters set by the Company from time to time which would govern the automatic purchase of Common Shares.
Strad believes that from time to time the market price of the Common Shares may not reflect their underlying value and that, at such times, the purchase of Common Shares for cancellation may represent an opportunity to enhance shareholder value. Strad intends to use the NCIB to enhance total long-term shareholder returns in conjunction with management’s strategic focus on growing the Company’s Industrial Matting business. Pursuant to the Company’s previous NCIB which expired on September 13, 2018, the Company purchased and cancelled an aggregate of 2,768,320 Common Shares at an average price paid of $1.49 per Common Share.
Strad specializes in industrial matting and equipment rentals for projects of any size, from a network of branches across Canada and the United States. Strad aims to exceed customer expectations in many industrial sectors, including Oil & Gas, Pipeline, Power Transmission, and Mining.
Strad is headquartered in Calgary, Alberta, Canada. Strad is listed on the Toronto Stock Exchange under the trading symbol “SDY”.
Caution Regarding Forward-Looking Statements
This news release contains certain statements that may constitute forward-looking information within the meaning of applicable securities laws. This information includes, but is not limited to Strad's intentions with respect to the NCIB and purchases thereunder and the effects of repurchases under the NCIB. Although Strad believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Strad can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions by their very nature they involve inherent risks and uncertainties. Actual results could defer materially from those currently anticipated due to a number of factors and risks. Certain of these risks are set out in more detail in Strad's Annual Information Form which has been filed on SEDAR and can be accessed at www.sedar.com.
The forward-looking statements contained in this press release are made as of the date hereof and Strad undertakes no obligation to update publically or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
For more information, please contact:
President & Chief Executive Officer
Chief Financial Officer