/NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED
STATES/
(TSX: AAV)
CALGARY,
AB, April 7, 2022 /CNW/ - Advantage Energy
Ltd. ("Advantage" or the "Corporation") announced today that due to
the continued strength in commodity prices and market conditions,
the Corporation is proceeding with and the Toronto Stock Exchange
(the "TSX") has approved the Corporation commencing a
normal course issuer bid (the "Bid").
Pursuant to the Bid, Advantage will purchase for cancellation,
from time to time, as it considers advisable, up to a maximum of
18,704,019 common shares of the Corporation. The Bid will commence
on April 13, 2022 and will
terminate on April 12, 2023 or such
earlier time as the Bid is completed or terminated at the option of
Advantage.
The maximum number of common shares to be purchased pursuant to
the Bid represents 10% of the public float, as of April 1, 2022. Purchases pursuant to the Bid will
be made on the open market through the facilities of the TSX and/or
alternative trading systems. The number of common shares that can
be purchased pursuant to the Bid is subject to a daily maximum of
263,879 common shares (which is equal to 25% of the average daily
trading volume of 1,055,518 from October
1, 2021 to March 31,
2022). The price that Advantage will pay for any common
shares under the Bid will be the prevailing market price on the TSX
at the time of such purchase. Common shares acquired under the Bid
will be cancelled.
Cormark Securities Inc. ("Cormark") has agreed to act on
the Corporation's behalf to make purchases of common shares
pursuant to the Bid.
Advantage believes that the common shares have been trading in a
price range which does not adequately reflect their value in
relation to the Corporation's current operations and its
growth prospects, and that, at such times, the purchase of common
shares for cancellation will increase the proportionate interest
of, and be advantageous to, all shareholders.
As of the close of business on April 1,
2022, the Corporation had 190,828,976 common shares
issued and outstanding and a public float of 187,040,191.
Further, the Corporation has entered into an automatic
share purchase plan with Cormark in order to facilitate repurchases
of its common shares under the Bid at times when the Corporation
would ordinarily not be permitted to purchase its securities due to
self-imposed blackout periods. Under the automatic share purchase
plan, Cormark may repurchase common shares based upon the
parameters prescribed by the TSX and applicable securities laws and
the terms of the plan and the parties' written agreement. Outside
of these blackout periods, common shares may be purchased under the
Bid in accordance with management's discretion. The automatic share
purchase plan has been approved by the TSX.
Notwithstanding that the Corporation is able to proceed with the
Bid at this time (due to the continued strength in commodity prices
and market conditions), the Corporation is asking shareholders to
consider and approve a reduction to the stated capital of the
common shares at its upcoming meeting of shareholders. If such
approval of shareholders is obtained, it will provide the
Corporation with the flexibility to purchase additional common
shares in the future pursuant to additional normal course issuer
bids, a substantial issuer bid or other similar transactions, or if
market conditions change substantially.
This news release does not constitute an offer to sell
securities, nor is it a solicitation of an offer to buy securities,
in any jurisdiction.
Advantage Energy Ltd.
2200, 440 -
2nd Avenue SW
Calgary, Alberta T2P 5E9
Phone: (403) 718-8000
Fax: (403) 718-8332
Web Site: www.advantageog.com
E-mail: ir@advantageog.com
Advisory
Certain information regarding Advantage set forth in this
document contains forward-looking statements that involve
substantial known and unknown risks and uncertainties. The use of
any of the words "plan", "expect", "intend", "believe", "should",
"anticipate" or other similar words, or statements that certain
events or conditions "may" or "will" occur are intended to identify
forward-looking statements. These statements are only predictions
and actual events or results may differ materially. Many factors
could cause Advantage's actual results to differ materially from
those expressed or implied in any forward-looking statements made
by, or on behalf of, Advantage. In particular, forward-looking
statements contained in this document include, but are not limited
to: statements with respect to the anticipated advantages to
shareholders of the Bid; and the potential for further purchases of
common shares by the Corporation in the future. These
forward-looking statements are subject to numerous risks and
uncertainties, including but not limited to the risk that the
anticipated benefits of the Bid may not be achieved. Further, the
future acquisition by the Corporation of the Corporation's common
shares, if any, and the level thereof is uncertain. Any decision to
acquire Shares of the Corporation will be subject to the discretion
of the board of directors and may depend on a variety of factors,
including, without limitation, the Corporation's business
performance, financial condition, financial requirements, growth
plans, expected capital requirements and other conditions existing
at such future time including, without limitation, contractual
restrictions, satisfaction of the solvency tests imposed on the
Corporation under applicable corporate law and receipt of
regulatory approvals. There can be no assurance that the
Corporation will acquire any common shares of the Corporation in
the future. Readers are cautioned that the foregoing list of
factors is not exhaustive. Although the forward-looking statements
contained in this document are based upon assumptions which
Management believes to be reasonable, the Corporation cannot assure
investors that actual results will be consistent with these
forward-looking statements. With respect to forward-looking
statements contained in this document, Advantage has made
assumptions regarding, among other things, the ability of the
Corporation to achieve the benefits of the Bid. These
forward-looking statements are made as of the date of this document
and Advantage disclaims any intent or obligation to update publicly
any forward-looking statements, whether as a result of new
information, future events or results or otherwise, other than as
required by applicable securities laws.
SOURCE Advantage Energy Ltd.