CALGARY,
AB, July 13, 2023 /CNW/ - Cathedral Energy
Services Ltd. (TSX: CET) ("Cathedral" or the
"Company") is pleased to announce that
it has filed a notice with the Toronto Stock Exchange
("TSX") and received approval to purchase through the
facilities of the TSX, other designated exchanges and/or
alternative Canadian trading systems, up to 12,160,008, or 5%, of
the 243,200,173 issued and outstanding Common Shares of the Company
("Common Shares") as of July 3,
2023. The price the Company will pay for any Common Shares
acquired will be the market price at the time of acquisition.
Purchases under the normal course issuer bid ("NCIB") will
be made by the Company and the Common Shares acquired shall be
cancelled. Purchases may commence on July
17, 2023, and will terminate no later than July 16, 2024. The actual number of Common Shares
purchased under the NCIB, the timing of purchases and the price at
which the Common Shares are purchased will depend on management
discretion based on factors such as market conditions.
The average daily trading volume ("ADTV") of the
Company's Shares on the TSX over the six months ending June 30, 2023, was 398,486 Shares. Under TSX
rules, the Company is entitled to purchase up to the greater of:
25% of the ADTV of the respective class of shares; or 1,000 shares
on any trading day; or a larger amount of shares per calendar week,
subject to the maximum number that may be acquired under the NCIB,
if the transaction meets the block purchase exception under TSX
rules. Accordingly, unless a block purchase meeting the block
purchase exception under TSX rules is made, the Company is entitled
to purchase up to 99,621 Common Shares on any trading day.
In connection with the NCIB, the Company has established an
automatic securities purchase plan ("the Plan") for the
Common Shares. The Plan was established to provide standard
instructions regarding how the Common Shares are to be repurchased
under the NCIB. Accordingly, the Company may repurchase its
securities under the Plan on any trading day during the NCIB
including during regulatory restrictions or self-imposed trading
blackout periods. The Plan will commence on July 17, 2023 and terminate on July 16, 2024. The Company may otherwise vary,
suspend or terminate the Plan only if it does not have material
non-public information and the decision to vary, suspend or
terminate the Plan is not taken during a self-imposed trading
blackout period. The Plan constitutes an "automatic plan" for
purposes of applicable Canadian securities legislation and has been
reviewed by the TSX.
The Board of Directors and senior management of the Company are
of the opinion that from time to time the purchase of its Common
Shares at the prevailing market price is in the best interest of
the Company and its shareholders. By making such repurchases, the
number of Common Shares in circulation will be reduced and the
proportionate interest of remaining shareholders of the Company in
the share capital of the Company will be increased on pro rata
basis.
ABOUT CATHEDRAL
Cathedral Energy Services Ltd., based in Calgary, Alberta is incorporated under the
Business Corporations Act (Alberta) and operates in the U.S. under
"Discovery Downhole Services", "Altitude Energy Partners" and "Rime
Downhole Technologies". Cathedral is publicly-traded on the Toronto
Stock Exchange under the symbol "CET". Cathedral is a trusted
partner to North American energy companies requiring high
performance directional drilling services. We work in partnership
with our customers to tailor our equipment and expertise to meet
their specific geographical and technical needs. Our experience,
technologies and responsive personnel enable our customers to
achieve higher efficiencies and lower project costs. For more
information, visit www.cathedralenergyservices.com
FORWARD-LOOKING
INFORMATION
This news release contains statements and information that may
constitute "forward-looking information" within the meaning of
applicable securities legislation, including statements identified
by the use of words such as "will", "expects", "positions",
"believe", "potential" and similar words, including negatives
thereof, or other similar expressions concerning matters that are
not historical facts. Forward-looking information in this news
release includes, but is not limited to, statements regarding
Cathedral's expectations regarding the Company's plans to purchase
for cancellation shares under the normal course issuer bid. Such
forward-looking information is based on various assumptions that
may prove to be incorrect, including, but not limited to,
assumptions with respect to: regulatory approval, market and
economic conditions, and availability of sellers. Although the
Company believes that such assumptions are reasonable, the Company
can give no assurance that such forward-looking statements will
prove to be correct or that any of the events anticipated by such
forward-looking statements will occur, or if any of them do so,
what benefits the Company will derive there from. Actual results
could differ materially due to a number of factors and risks
including, but not limited to market and economic conditions,
availability of sellers and changes in laws and regulations.
Additional information regarding risks and uncertainties of the
Company's business are contained under the heading "Risk Factors"
in the Company's annual information form for the financial year
ended December 31, 2022 and the
Company's other public filings which are available under the
Company's profile on SEDAR at www.sedar.com. The forward-looking
information included in this news release is made as of the date of
this news release and the Company does not undertake an obligation
to publicly update such forward-looking information to reflect new
information, future events or otherwise, except as required by
applicable law.
SOURCE Cathedral Energy Services Ltd.