/NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED
STATES/
(TSX: AAV)
CALGARY,
AB, May 9, 2024 /CNW/ - Advantage Energy Ltd.
("Advantage" or the "Corporation") announced today that the
Corporation is proceeding with, and the Toronto Stock Exchange (the
"TSX") has approved, the Corporation renewing its normal course
issuer bid (the "Bid").
Pursuant to the Bid, Advantage will purchase for cancellation,
from time to time, as it considers advisable, up to a maximum of
13,835,841 common shares of the Corporation. The Bid will commence
on May 14, 2024 and will terminate on
May 13, 2025 or such earlier time as
the Bid is completed or terminated at the option of Advantage.
The maximum number of common shares to be purchased pursuant to
the Bid represents 10% of the public float, as of April 30, 2024. Purchases pursuant to the Bid
will be made on the open market through the facilities of the TSX
and/or Canadian alternative trading systems. The number of common
shares that can be purchased pursuant to the Bid is subject to a
daily maximum of 85,557 common shares (which is equal to 25% of the
average daily trading volume of 342,230 common shares from
November 1, 2023 to April 30, 2024), subject to certain exemptions
pursuant to the rules of the TSX. The price that Advantage 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.
Peters & Co. Limited ("Peters & Co.") has agreed
to act on the Corporation's behalf to make purchases of common
shares pursuant to the Bid.
Advantage believes that the common shares have been trading in a
price range which does not adequately reflect their value in
relation to the Corporation'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 shareholders.
As of the close of business on April 30, 2024, the Corporation
had 161,062,093 common shares issued and
outstanding and a public float of 138,358,410.
Further, the Corporation has entered into an automatic share
purchase plan with Peters & Co. in order to facilitate
repurchases of its common shares under the Bid at times when the
Corporation would ordinarily not be permitted to purchase its
securities due to self-imposed blackout periods. Under the
automatic share purchase plan, Peters & Co. may repurchase
common shares based upon the parameters prescribed by the TSX and
applicable securities laws and the terms of the plan and the
parties' written agreement. Outside of these blackout periods,
common shares may be purchased under the Bid in accordance with
management's discretion. The automatic share purchase plan has been
approved by the TSX.
Under Advantage's normal course issuer bid which expired on
April 12, 2024 (the "Expiring
NCIB"), the Corporation received approval from the TSX to
purchase for cancellation up to a maximum of 16,201,997 common
shares, representing approximately 10% of the 162,019,975 common
shares comprising the public float as of April 1, 2023. As of April
12, 2024, the Corporation had repurchased and cancelled
10,113,081 common shares under the
Expiring NCIB, at a weighted average
purchase price of approximately $9.04 per
common share through market purchases on the TSX and Canadian
alternative trading systems.
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.
Advisory
Certain information regarding Advantage 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 Advantage's actual results to differ materially from
those expressed or implied in any forward-looking statements made
by, or on behalf of, Advantage. 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; and the potential for further purchases of
common shares by the Corporation in the future. 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. Further, the
future acquisition by the Corporation of the Corporation's common
shares, if any, and the level thereof is uncertain. Any decision to
acquire common shares of the Corporation will be subject to the
discretion of the board of directors and may depend on a variety of
factors, including, without limitation, the Corporation's business
performance, financial condition, financial requirements, growth
plans, expected capital requirements and other conditions existing
at such future time including, without limitation, contractual
restrictions, satisfaction of the solvency tests imposed on the
Corporation under applicable corporate law and receipt of
regulatory approvals. There can be no assurance that the
Corporation will acquire any common shares of the Corporation in
the future. 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 Corporation cannot assure
investors that actual results will be consistent with these
forward-looking statements. With respect to forward-looking
statements contained in this document, Advantage has made
assumptions regarding, among other things, the ability of the
Corporation to achieve the benefits of the Bid. These
forward-looking statements are made as of the date of this document
and Advantage 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.
SOURCE Advantage Energy Ltd.