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CALGARY, Jan. 6, 2016 /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
2,772,136 common shares, representing approximately 10% of the
public float of High Arctic, being 27,721,368 as of January 5, 2016. As of January 5, 2016, there were
54,368,469 common shares outstanding. The maximum number
of common shares that High Arctic may purchase on any given day is
17,154 common shares, which is 25% of the Corporation's average
daily trading volume on the TSX for the last six months of 2015
adjusted for the Corporation's NCIB during the same period.
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 January 12, 2016 to
January 11, 2017, 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 January
6, 2016. 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 expires on
January 11, 2016 and under that
program, a total of 1,590,483 common shares at a weighted average
price of $3.63 per share have been
repurchased for cancellation as of the close of markets on
January 4, 2016.
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.
This press release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "may", "will", "project",
"should", "believe", "plans", "intends" and similar expressions are
intended to identify forward-looking information or statements.
More particularly and without limitation, this press release
contains forward-looking statements and information relating to
liquidity and availability of funding. These forward-looking
statements and information are based on certain key expectations
and assumptions made by High Arctic. Although High Arctic believes
that the expectations and assumptions on which such forward-looking
statements and information are based are reasonable, undue reliance
should not be placed on the forward-looking statements and
information as High Arctic cannot give any assurance that they will
prove to be correct. Since forward-looking statements and
information address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual
results could differ materially from those currently anticipated
due to a number of factors and risks. These include, but are not
limited to, prevailing economic conditions; commodity prices;
sourcing, pricing; dependence on major customers; exchange rate
fluctuations; marketing; loss of markets; competition; incorrect
assessment of the value of acquisitions; failure to realize the
anticipated benefits of acquisitions; ability to access sufficient
capital from internal and external sources; failure to obtain
required regulatory and other approvals; and changes in
legislation, including but not limited to tax laws, royalties and
environmental regulations.
Readers are cautioned that the foregoing list of risks and
uncertainties is not exhaustive. Additional information on these
and other risk factors that could affect High Arctic's operations
or financial results are included in High Arctic's annual
information form and may be accessed through the SEDAR website
(www.sedar.com). The forward-looking statements and
information contained in this press release are made as of the date
hereof and High Arctic does not undertake any obligation to update
publicly or revise any forward-looking statements or information,
whether as a result of new information, future events or otherwise,
unless so required by applicable securities laws.
SOURCE High Arctic Energy Services Inc.