Alvopetro Energy Ltd. is pleased to announce that the TSX Venture Exchange ("TSXV") has now approved the Company's proposed normal course issuer bid (the "NCIB").
Pursuant to the NCIB, Alvopetro is authorized to repurchase up to 2,876,414 common shares, representing 7.9% of the common shares outstanding as of January 3, 2023 and 10% of Alvopetro's "public float", over the period commencing on January 6, 2023 and ending on the earlier of: January 5, 2024 or such earlier date as the NCIB is completed or is terminated at the Company's election. Purchases under the NCIB may be made through open market transactions on the TSXV, the OTCQX and any alternate trading systems in Canada on which the common shares are traded, based on the prevailing market price, at such times and in such quantities as the Corporation may determine, subject to applicable regulatory restrictions. A maximum of 5% of Alvopetro's common shares outstanding may be purchased on the OTCQX during the twelve-month term of the NCIB. Any common shares purchased under the NCIB will be cancelled. Alvopetro has appointed Research Capital Corporation as its broker to conduct the NCIB transactions.
Alvopetro has an established strategy to balance reinvestment in our business with stakeholder returns. In combination with our quarterly dividends, the NCIB provides us with further flexibility with respect to stakeholder returns. Where Alvopetro has excess cash and working capital on hand, the NCIB provides Alvopetro with discretion to repurchase our common shares for cancellation at times where our Board of Directors and senior management believe the market price of the common shares may not fully reflect the reflect the underlying value of the common shares and Alvopetro's business and future prospects. In such circumstances, the repurchase of shares under the NCIB increases the underlying value of the common shares to the remaining shareholders. In addition, the purchases under the NCIB may increase liquidity to shareholders wishing to sell their common shares.
Alvopetro retains discretion whether to make purchases under the NCIB, and to determine the timing, amount and acceptable price of any such purchases, subject at all times to applicable regulatory requirements.
