|PrairieSky Royalty Ltd. - PSK.t was formed to acquire fee simple mineral title lands predominately in Alberta with the objective to generate significant free cash flow and growth to its shareholders through indirect oil and gas investment at a relatively low risk and low cost to PrairieSky Royalty.|
PrairieSky Royalty Ltd. ("PrairieSky" or the "Company") (TSX:PSK) is pleased to announce that the Toronto Stock Exchange (the "TSX") has accepted the notice of PrairieSky's intention to commence a normal course issuer bid (the "NCIB").
On April 26, 2016, PrairieSky announced its intention to seek TSX approval for a NCIB. The NCIB allows the Company to purchase up to 1,600,000 common shares (representing approximately 1% of the public float of 151,509,248 common shares issued and outstanding as of April 27, 2016) over a period of twelve months commencing on May 2, 2016. The NCIB will expire no later than May 1, 2017.
Under the NCIB, common shares may be repurchased in open market transactions on the TSX, and/or other Canadian exchanges, or by such other means as may be permitted by the TSX and applicable securities laws. In accordance with the rules of the TSX governing normal course issuer bids, the total number of common shares the Company is permitted to purchase is subject to a daily purchase limit of 243,509 common shares, representing 25% of the average daily trading volume of common shares on the TSX calculated for the six-month period ended March 31, 2016, provided, however, that the Company may make one block purchase per calendar week which exceeds the daily repurchase restriction.
PrairieSky intends to enter into an automatic purchase plan with its broker, TD Securities Inc., in order to facilitate purchases of its common shares. The automatic purchase plan allows for purchases by the Company of its common share at any time, including, without limitation, when the Company would ordinarily not be permitted to make purchases due to regulatory restriction or self-imposed blackout periods. Purchases will be made by PrairieSky's broker based upon the parameters prescribed by the TSX and the terms of the parties' written agreement.
PrairieSky currently intends to only use $40 million to effect NCIB purchases over the next 12 months (approximately $3.3 million per month). However, the Company's board of directors may consider, from time to time, applying to the TSX to increase the amount of NCIB purchases. Decisions regarding increases to the NCIB will be based on market conditions, share price, best use of funds from operations, and other factors including other options to expand our portfolio of royalty assets