CALGARY,
AB, July 18, 2024 /CNW/ - CES Energy
Solutions Corp. ("CES" or the "Corporation")
(TSX: CEU) (OTC: CESDF) is pleased to announce that the Toronto
Stock Exchange (the "TSX") has accepted CES' notice of its
intention to implement a normal course issuer bid ("NCIB").
The NCIB effectively renews the previous NCIB which terminated in
March 2024, when the maximum number
of issued and outstanding common shares of the Corporation (the
"Common Shares") were repurchased.
Under the previous NCIB, 18,719,430 Common Shares were acquired
through market purchases on the TSX and other alternative Canadian
securities trading platforms, at a volume-weighted average purchase
price of approximately $3.66 per
Common Share.
CES' Board of Directors and management continue to believe that
from time to time the market price of CES' Common Shares do not
reflect their underlying value. Accordingly, the renewal of CES'
NCIB provides the Corporation with an additional capital allocation
alternative that allows CES to reduce the Corporation's Common
Shares, providing an attractive opportunity to enhance shareholder
value.
As of July 9, 2024, there were
235,514,276 issued and outstanding Common Shares. Pursuant to the
renewed NCIB, CES may purchase through the facilities of the TSX
and other alternative Canadian securities trading platforms, from
time to time over the next 12 months, up to 19,198,719 Common
Shares, being 10.0% of the public float of Common Shares. Common
Shares purchased under the NCIB will be subsequently cancelled by
the Corporation. The NCIB will commence on July 22, 2024 and will terminate the earlier of
July 21, 2025 or on date on which the
maximum number of Common Shares which can be acquired pursuant to
the NCIB are purchased.
Under TSX rules, CES may repurchase up to 125,987 Common Shares
on any single trading day on the TSX, being 25% of the average
daily trading volume of the Common Shares on the TSX for the six
months ended June 30, 2024. The
Corporation is also permitted to make one block purchase in excess
of the daily maximum per calendar week.
CES will enter into an automatic securities purchase plan in
connection with the NCIB which would permit the Corporation to
repurchase its Common Shares during periods of blackout or other
periods in which the Corporation would not ordinarily be permitted
to repurchase its Common Shares. Such automatic securities purchase
plan will be subject to certain parameters set by the Corporation
from time to time which would govern the automatic purchase of
Common Shares.
About CES Energy Solutions Corp.
CES is a leading provider of technically advanced consumable
chemical solutions throughout the lifecycle of the oilfield. This
includes solutions at the drill-bit, at the point of completion and
stimulation, at the wellhead and pump-jack, and finally through to
the pipeline and midstream market. CES' business model is
relatively asset light and requires limited re-investment capital
to grow. As a result, CES has been able to capitalize on the
growing market demand for drilling fluids and production and
specialty chemicals in North
America while generating free cash flow.
Additional information about CES is available at SEDAR+ at
www.sedarplus.ca or on the Corporation's website at
www.cesenergysolutions.com.
Forward Looking Information
This press release contains certain forward-looking
statements and forward-looking information ("forward-looking
information") within the meaning of applicable Canadian
securities laws. Forward-looking information is often, but not
always, identified by the use of words such as "anticipate",
"believe", "plan", "intend", "objective", "continuous", "ongoing",
"estimate", "expect", "may", "will", "project", "should" or similar
words suggesting future outcomes. In particular, this press release
includes, without limitation, forward-looking information relating
to the Corporation's: expectations regarding the implementation of
the NCIB to repurchase and cancel Common Shares and the
potential means of funding the NCIB. CES believes the expectations
reflected in such forward-looking information are reasonable but no
assurance can be given that these expectations will prove to be
correct and such forward-looking information should not be unduly
relied upon.
Forward-looking information is based on various assumptions.
Those assumptions are based on information currently available to
CES, and in particular certain forward-looking information in this
press release is based on the assumption that the conditions of the
TSX can be satisfied and the TSX will grant final approval in
respect of the NCIB.
Forward-looking information is not a guarantee of future
performance and involves a number of risks and uncertainties some
of which are described herein. Any forward-looking information is
made as of the date hereof and, except as required by law, CES
assumes no obligation to publicly update or revise such information
to reflect new information, subsequent or otherwise.
THE TORONTO
STOCK EXCHANGE HAS NOT REVIEWED
AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF
THIS RELEASE.
SOURCE CES Energy Solutions Corp.