CALGARY, Oct. 5 /CNW/ - The Corporation has filed a Notice of Intention to Make a Normal Course Issuer Bid (the "Notice") with the Toronto Stock Exchange (the "Exchange") pursuant to which the Corporation indicated that it intends, subject to the receipt of regulatory approval, to make a normal course issuer bid for certain of its outstanding Class A Non-Voting Shares on the terms set forth in the Notice. At the time of filing the Notice, the board of directors of the Corporation was of the belief, and continues to be of the belief, that the purchase of the Class A Shares from time to time at appropriate prices will minimize any dilution resulting from the exercise of stock options to purchase Class A Shares and is an advantageous use of the Corporation's funds.
On September 30, 2009, 16,578,333 Class A Shares were outstanding. Under the rules of the Exchange, in the period commencing on October 8, 2009 and ending on October 7, 2010 the Corporation may acquire up to 828,917 Class A Shares of the Corporation, being approximately 5% of the Class A Shares outstanding as at September 30, 2009. If market conditions permit, the Corporation presently anticipates that it will acquire up to 497,349 Class A Shares, which number represents approximately 3.0% of the Class A Shares outstanding as at September 30, 2009. Pursuant to policies of the TSX, the number of Class A Shares that the Corporation may purchase during any single trading day is subject to a daily maximum of 2,368, although the Corporation may also make use of the block purchase exemption to acquire in excess of this amount.
Any shares purchased pursuant to the Notice will be cancelled. Shares will be purchased at the market price of the shares at the time of purchase and will be purchased on behalf of the Corporation by a registered investment dealer through the facilities of the Exchange and in accordance with Exchange requirements. The funding for any purchase of Class A Shares pursuant to the normal course issuer bid will be financed out of working capital of the Corporation.
The average daily trading volume for the Class A Shares for the six month period preceding and ending on September 30, 2009 was 9,474. The Corporation purchased 44,625 Class A Shares at an average trading price of $10.63 during the most recent 12 month period preceding the date hereof pursuant to a normal course issuer bid which commenced on August 5, 2008 and expired on August 4, 2009. All of such purchases were made by means of open market transactions through the facilities of the Exchange. Trustees under the pension plans of affiliates of the Corporation purchased no Class A Shares during the 12 month period preceding the date hereof.
A copy of the Notice may be obtained by any shareholder without charge, by contacting the Secretary/Treasurer of the Corporation at the head office of the Corporation.
AKITA Drilling Ltd. is an Alberta Company engaged in the contract drilling business and its outstanding Class A Non-Voting Shares are listed on the Toronto Stock Exchange under the symbol "AKT.A".
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For further information: Murray Roth, Vice President, Finance, AKITA Drilling Ltd., (403) 292-7950
