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CALGARY, Jan. 8, 2015 /CNW/ - High Arctic Energy Services
Inc. (TSX: HWO) ("High Arctic" or the "Corporation") is pleased to
announce that it has made the necessary filings, and received the
necessary approvals to conduct a normal course issuer bid ("NCIB")
through the facilities of the Toronto Stock Exchange ("TSX").
The TSX has accepted the Corporation's notice to conduct the
NCIB to purchase outstanding common shares on the open market, in
accordance with the rules of the TSX. As approved by the TSX,
the Corporation is authorized to purchase up to
2,938,125 common shares, representing approximately 10% of the
public float of High Arctic, being 29,381,251 as of January 7, 2015. As of January 7, 2015, there were
55,768,652 common shares outstanding. The maximum number
of common shares that High Arctic may purchase on any given day is
20,505 common shares, which is 25% of the Corporations average
daily trading volume on the TSX. High Arctic may also make
one weekly block repurchase which exceeds the daily limit subject
to prescribed rules. All common shares acquired under the NCIB will
be cancelled.
The Corporation is authorized to make purchases during the
period from Jan 12, 2015 to
Jan 11, 2016, or until such earlier
time as the NCIB is completed or terminated at the option of the
Corporation. Any common shares the Corporation purchases under the
NCIB will be purchased on the open market through the facilities of
the TSX or alternative Canadian markets, at the prevailing market
price at the time of the transaction. The Corporation has appointed
AltaCorp Capital Inc. ("AltaCorp") as its broker to conduct the
NCIB transactions under an automatic purchase plan agreement
("APPA") dated Jan 7, 2015. The
APPA will allow AltaCorp to purchase common shares under the bid
during internal blackout periods when the Corporation would
normally not be permitted to trade in its shares. Such
purchases will be at the sole discretion of AltaCorp based on
direction received from High Arctic prior to any blackout period
and in accordance with all regulatory and securities law.
Management of the Corporation believes that from time to time
the market price of the High Arctic common shares may not reflect
their underlying value and that, at such times, the purchase of
common shares for cancellation will increase the proportionate
interest of, and be advantageous to, all remaining shareholders. In
addition, the purchases by High Arctic under the NCIB may increase
liquidity to the Corporation's shareholders wishing to sell their
common shares. The Corporation's previous NCIB expired on
May 27, 2014 and under that program,
a total of 105,470 common shares at a weighted average price of
$2.19 per share were repurchased for
cancellation during the 12 month period when it operated.
Forward-Looking Statements
This news release may contain forward-looking statements
relating to expected future events and anticipated financial and
operating results of the Company that involve risks and
uncertainties. Actual results may differ materially from management
expectations, as projected in such forward-looking statements, for
a variety of reasons, including, but not limited to, market and
general economic conditions, and the risks and uncertainties
detailed in both the Company's Management Discussion and Analysis
for the year ended December 31, 2013
and the Annual Information Form for the year ended December 31, 2013 found on SEDAR (www.sedar.com).
Due to the potential impact of these factors, the Company disclaims
any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, unless required by applicable law.
About High Arctic
High Arctic is a publicly traded company listed on the Toronto
Stock Exchange under the symbol "HWO". The Corporation's
principal focus is to provide drilling and specialized well
completion services, equipment rentals and other services to the
oil and gas industry.
High Arctic's largest operation is in Papua New Guinea where it provides drilling
and specialized well completion services and supplies rig matting,
camps and drilling support equipment on a rental basis. The
Canadian operation provides snubbing services, nitrogen supplies
and equipment on a rental basis to a large number of oil and
natural gas exploration and production companies operating in
Western Canada.
SOURCE High Arctic Energy Services Inc.