CALGARY, May 22, 2019 /CNW/ - Secure Energy Services
Inc. ("Secure" or the "Corporation") (TSX – SES) is pleased to
announce 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, 2019.
Pursuant to the renewed NCIB, Secure may repurchase from time to
time up to a maximum of 8,028,468 common shares, at such times and
in such quantities as the Corporation may determine, subject to
applicable regulatory restrictions. 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. Any common
shares purchased under the NCIB will be cancelled.
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 period will commence on May 28, 2019 and end on May 27, 2020 or such earlier date as the NCIB is
completed or is terminated at the Corporation's election.
As of May 15, 2019, there were
160,569,374 common shares outstanding and accordingly, the maximum
number of common shares that may be repurchased under the NCIB
represents approximately 5% of the number of common shares
currently outstanding. Under TSX rules, not more than 93,466 common
shares (being 25% of the average daily trading volume on the TSX of
373,867 common shares for the six months ended April 2019) 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.
The NCIB provides the Corporation with an additional capital
allocation alternative with a view to long-term shareholder
value. In circumstances where the prevailing market price of
the common shares does not reflect what Secure believes to be the
underlying value of its business and assets, a purchase of common
shares for cancellation under the NCIB may provide an opportunity
to enhance shareholder value by increasing the proportionate equity
interest of remaining shareholders at an attractive valuation and
improving per share metrics on an accretive basis.
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 8,227,359 common shares under its existing NCIB for the
May 28, 2018 to May 27, 2019 bid period, representing
approximately 5% of the number of common shares outstanding at the
time of commencement. As of May 15, 2019, Secure has
repurchased and cancelled 6,546,273 common shares under the current
NCIB through market purchases on the TSX, at a volume-weighted
average purchase price of approximately $7.44 per share.
ABOUT SECURE ENERGY SERVICES INC.
Secure is a TSX publicly traded integrated energy business with
midstream infrastructure, environmental and technical solutions
divisions providing industry leading customer solutions to upstream
oil and natural gas companies operating in western Canada and certain regions in the United States.
SOURCE SECURE Energy Services Inc.