Toscana Energy Commences Normal Course Issuer Bid
May 18 2017 - 07:00AM
Toscana Energy Income Corporation ("Toscana" or the "Corporation")
(TSX:TEI) today announces that a Notice of Intention to commence
its Normal Course Issuer Bid (the "Bid") has been approved by its
Board of Directors (the "Board") and has been filed with and
accepted by the Toronto Stock Exchange. The Corporation believes
that the purchase of its shares at recent market prices is a
worthwhile investment since, in its view, recent market prices of
its shares do not properly reflect the underlying value of its
assets and business.
Pursuant to the Bid, Toscana is authorized to
repurchase up to 609,096 common shares in the capital of Toscana
("Common Shares"), which is equal to 10% of Toscana's public float
and approximately 8.4% of the issued and outstanding Common Shares
as at May 12, 2017. As at May 12, 2017, there were 7,289,003 Common
Shares issued and outstanding. The average daily trading volume of
the Corporation’s Common Shares from November 1, 2016 to April 30,
2017 was 11,312 Common Shares ("ADTV"). Accordingly, pursuant to
the rules of the Toronto Stock Exchange, the maximum number of
Common Shares that the Corporation may repurchase in any one day is
25% of the ADTV, which totals 2,828 Common Shares. Toscana may also
make one block purchase per calendar week which exceeds the daily
repurchase restriction.
The Bid will commence on May 23, 2017 and will
terminate on the earlier of: (i) May 22, 2018; and (ii) the date on
which the maximum number of Common Shares are purchased pursuant to
the Bid. Purchases of Common Shares under the Bid will be effected
through the facilities of the Toronto Stock Exchange, other
alternative trading platforms or any other exchange recognized or
designated by the securities regulatory authorities as a
"designated exchange" as such term is defined in Multilateral
Instrument 62-104 – Take Over Bids and Issuer Bids, at the market
price at the time of purchase. Common Shares purchased pursuant to
the Bid will thereafter be cancelled.
National Bank Financial Inc. ("National Bank")
will be the broker firm responsible for making purchases of Common
Shares under the Bid on behalf of Toscana pursuant to an automatic
share repurchase plan agreement to be dated as of May 23, 2017
between Toscana and National Bank (the "Agreement"). Concurrent
with entering into the Agreement, Toscana provided National Bank
with a certificate, executed by an officer of Toscana, confirming
that Toscana is aware of the Agreement and that to the best
knowledge of such officer, there is no material undisclosed
information regarding Toscana. Pursuant to the Agreement, the
timing for the purchase of Common Shares, the number of Common
Shares purchased and the price payable for the Common Shares will
be determined by National Bank in its sole discretion, without
consultation with Toscana, having regard to the price limitations
and other terms of the Agreement and the rules of the Toronto Stock
Exchange.
About Toscana Energy Income
Corporation
Toscana Energy Income Corporation is a
conventional oil and gas producer with the mandate to acquire high
quality, long life oil and gas assets including royalties,
non-operated working interests and unitized production for yield
and capital appreciation. Toscana Energy Income Corporation is
managed by Sprott Toscana through Toscana Energy Corporation.
Sprott Toscana is a member of the Sprott Group of Companies.
For further information, please visit our
website at www.sprott-toscana.com or contact:
Joseph S. Durante, Chief Executive OfficerTel:
(403) 410-6793Fax: (403)
444-0090E-Mail jdurante@sprott-toscana.com