High Arctic Energy Services Inc. ("High Arctic" or the "Corporation"), further to its news release dated May 11, 2024, is pleased to announce the dates for a distribution of $0.76 per share to its shareholders by way of return of capital (the "Return of Capital"), which was approved by shareholders at the annual general and special meeting held on June 17, 2024. The record date for the Return of Capital will be July 9, 2024 and the payment date will be July 17, 2024. The Return of Capital is expected to be generally more tax advantageous to shareholders than a dividend.
The Toronto Stock Exchange (the "TSX") has determined to implement due bill trading for the Return of Capital. A due bill is an entitlement that will attach to each share traded, from the record date for the Return of Capital to the payment date, inclusive. Each due bill will notionally represent the $?0.76 ?distribution that a holder of a common share of High Arctic on the record date is entitled to receive pursuant to the Return of Capital. During the due bill trading period, a seller of shares (who is prospectively entitled to the $?0.76 ?distribution) will also sell to the purchaser the entitlement to the distribution (which is represented by the due bill attached to each share sold). Due bill trading defers the ex-distribution date and ensures shareholders are not deprived of the value of the Return of Capital between the record date and the payment date.
Key dates for the Return of Capital are:
The record date to determine shareholders entitled to receive the distribution will be July 9, 2024;
Due bill trading will commence on July 9, 2024;
The payment date for the distribution will be July 17, 2024;
The ex-distribution date will be July 18, 2024 (the first trading day after the payment date, so that trades on and after that date will not have due bills attached); and
The redemption date used by CDS will also be July 18, 2024.
All of the foregoing dates are subject to the approval of the TSX.
The Return of Capital will be funded from the Corporation's cash balances. In July 2022, the Corporation made a ??strategic decision to divest certain well servicing assets in Canada for cash proceeds of $38.2 million. ?As a result of receiving these cash proceeds plus, cash flow generated subsequently through operating, investing and financing activities, the Corporation had positive working capital of ?approximately $67.6 million, which included a cash ?balance of approximately $57.0 million as at March ??31, 2024??.
The Corporation expects to close the proposed plan of arrangement (the "Arrangement") between the Corporation and High Arctic Overseas Holdings Corp., also announced on May 11, 2024, on or about July 31, 2024. For more information on the Arrangement and the Return of Capital, please see the management information circular of the Corporation dated May 9, 2024, available on the Corporation's SEDAR+ profile at www.sedarplus.ca.