CALGARY, AB, July 18, 2023 /CNW/ – CES Energy Solutions Corp. (“CES” or the “Corporation“) (TSX: CEU) (OTC: CESDF) is pleased to announce that the Toronto Stock Exchange (the “TSX“) has accepted CES’ notice of its intention to implement a normal course issuer bid (“NCIB“). The NCIB effectively renews the existing NCIB which is scheduled to terminate on July 20, 2023.
CES’ Board of Directors and management continue to believe that the market price of CES’ common shares does not reflect their underlying value. Accordingly, the renewal of CES’ NCIB will allow CES to opportunistically reduce the issued and outstanding common shares of the Corporation (the “Common Shares“) and enhance shareholder value.
Pursuant to the renewed NCIB, CES may purchase through the facilities of the TSX and other alternative Canadian securities trading platforms, from time to time over the next 12 months, up to 18,719,430 Common Shares, being 10.0% of the public float of Common Shares. Common Shares purchased under the NCIB will be subsequently cancelled by the Corporation. The NCIB will commence on July 21, 2023 and will terminate the earlier of July 20, 2024 or on date on which the maximum number of Common Shares which can be acquired pursuant to the NCIB are purchased.
Under TSX rules, CES may repurchase up to 109,810 Common Shares, on the TSX, on any single trading day, being 25% of the average daily trading volume of the Common Shares on the TSX for the six months ended June 30, 2023. The Corporation is also permitted to make one block purchase in excess of the daily maximum per calendar week. CES expects to enter into an automatic securities purchase plan in connection with the NCIB which would permit the Corporation to repurchase its Common Shares during periods of blackout or other periods in which the Corporation would not ordinarily be permitted to repurchase its Common Shares. Such automatic securities purchase plan will be subject to certain parameters set by the Corporation from time to time which would govern the automatic purchase of Common Shares.
As of July 14, 2023, there were 252,852,625 issued and outstanding Common Shares. Under the current NCIB that is scheduled to terminate on July 20, 2023, the Corporation was approved by the TSX to repurchase up to 14,399,478 Common Shares, being 7.5% of the public float of Common Shares. As of July 14, 2023, the Corporation has repurchased and subsequently cancelled 8,863,800 Common Shares, or 62% of Common Shares available for repurchase, through market purchases on the TSX and other alternative Canadian securities trading platforms, at a volume-weighted average purchase price of approximately $2.60 per Common Share.
CES is a leading provider of technically advanced consumable chemical solutions throughout the lifecycle of the oilfield. This includes solutions at the drill-bit, at the point of completion and stimulation, at the wellhead and pump-jack, and finally through to the pipeline and midstream market. CES’ business model is relatively asset light and requires limited re-investment capital to grow. As a result, CES has been able to capitalize on the growing market demand for drilling fluids and production and specialty chemicals in North America while generating free cash flow.
This press release contains certain forward-looking statements and forward-looking information (“forward-looking information“) within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as “anticipate”, “believe”, “plan”, “intend”, “objective”, “continuous”, “ongoing”, “estimate”, “expect”, “may”, “will”, “project”, “should” or similar words suggesting future outcomes. In particular, this press release includes, without limitation, forward-looking information relating to the Corporation’s: expectations regarding the implementation of the NCIB to repurchase and cancel common share and the potential means of funding the NCIB. CES believes the expectations reflected in such forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.
Forward-looking information is based on various assumptions. Those assumptions are based on information currently available to CES, and in particular certain forward-looking information in this press release is based on the assumption that the conditions of the TSX can be satisfied and the TSX will grant final approval in respect of the NCIB.
Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties some of which are described herein. Any forward-looking information is made as of the date hereof and, except as required by law, CES assumes no obligation to publicly update or revise such information to reflect new information, subsequent or otherwise.
THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE CES Energy Solutions Corp.
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