Precision Drilling Corporation (“Precision”) (PD; PDS) announced that the Toronto Stock Exchange (the “TSX”) has approved its intention to implement a normal course issuer bid (“NCIB”) for a portion of its common shares (“Common Shares”). Precision believes the NCIB continues to represent another tool for the Company to enhance the value of its underlying shares.
Pursuant to the renewed NCIB, the Company has been authorized by the TSX to acquire up to a maximum of 1,326,321 Common Shares, or approximately 10% of the public float as of September 5, 2023 for cancellation. Purchases under the NCIB may commence on September 19, 2023 and will terminate no later than September 18, 2024, or such earlier time as the Company completes its purchases pursuant to the NCIB or provides notice of termination.
Purchases under the NCIB will be made in accordance with applicable regulatory requirements through the facilities of the TSX, the New York Stock Exchange (the “NYSE”), other designated exchanges and/or alternative trading systems in Canada or the United States or by such other means as may be permitted by the applicable securities regulator at a price per Common Share representative of the market price at the time of acquisition. The number of Common Shares that can be purchased pursuant to the NCIB is subject to a current daily maximum of 22,573 Common Shares (which is equal to 25% of the average daily trading volume of 90,295 on the TSX for the six full calendar months ending August 31, 2023), subject to the Company's ability to make one block purchase of Common Shares per calendar week that exceeds such limits. All Common Shares purchased under the NCIB will be cancelled after their purchase. The Company intends to fund the purchases out of its available resources.
Pursuant to its prior NCIB, under which the Company had approval from the TSX to purchase up to 1,148,771 Common Shares for the period of August 29, 2022 to August 28, 2023, the Company has purchased 263,215 Common Shares on the TSX, NYSE and alternative trading systems at a weighted average purchase price of CAD$67.49 per Common Share.
The Company intends to enter into an automatic securities purchase plan effective September 19, 2023 under which its broker may purchase Common Shares in connection with the NCIB. The plan will contain a prearranged set of criteria in accordance with which its broker may make Common Share purchases. These strict parameters enable the purchase of Common Shares during times when it would ordinarily not be permitted due to self-imposed blackout periods, insider trading rules or otherwise. Such plan is adopted in accordance with applicable Canadian securities laws and the requirements of Rule 10b5-1 under the
U.S. Securities Exchange Act of 1934, as amended.
