Mr. Tom Simons reports
CES ENERGY SOLUTIONS CORP. ANNOUNCES ACCEPTANCE OF PREVIOUSLY ANNOUNCED NORMAL COURSE ISSUER BID, DECLARES CASH DIVIDEND AND PROVIDES Q2 CONFERENCE CALL DETAILS
The Toronto Stock Exchange has accepted CES Energy Solutions Corp.'s notice of intention to implement a normal course issuer bid (NCIB). CES's board of directors and management believe that the market price of CES's common shares do not reflect their underlying value. Accordingly, the implementation of an NCIB will allow CES to opportunistically reduce the issued and outstanding common shares of the corporation and enhance shareholder value.
Pursuant to the NCIB, CES may purchase through the facilities of the TSX and other alternative Canadian security trading platforms, from time to time over the next 12 months, up to 24,587,978 common shares, being 10 per cent 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 17, 2018, and will terminate the earlier of July 16, 2019, or on the date on which the maximum number of common shares which can be acquired pursuant to the NCIB is purchased.
Under TSX rules, CES may repurchase up to 192,801 common shares on any single trading day, being 25 per cent of the average daily trading volume of the common shares for the six months ended June 30, 2018. The corporation is also permitted to make one block purchase in excess of the daily maximum per calendar week. CES may enter into an automatic security 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 security purchase plan would be subject to certain limits set by the corporation from time to time, which would govern the automatic purchase of common shares.
Declaration of cash dividend
CES is also pleased to announce today that it will pay a cash dividend of 0.5 cent per common share on Aug. 15, 2018, to shareholders of record at the close of business on July 31, 2018. As previously disclosed on June 14, 2018, CES doubled its monthly cash dividend from 0.25 cent to 0.5 cent, which is reflective of continued improvement in CES's free cash flow.
Second quarter 2018 conference call details
CES also announced today that it will conduct its second quarter 2018 conference call on Aug. 10, 2018, following the coming release of its financial results for the second quarter ended June 30, 2018. The second quarter 2018 results are expected to be released after the close of market the day before the conference call. Tom Simons, president and chief executive officer of CES, will host the call.
Date: Aug. 10, 2018
Time: 9 a.m. MT
Dial-in: 800-319-4610 or 416-915-3239
A replay of the conference call will be accessible on the corporation's investor relations website by selecting news releases.
About CES Energy Solutions Corp.
CES is a leading provider of technically advanced consumable chemical solutions throughout the life cycle of the oil field. This includes solutions at the drill bit, at the point of completion and stimulation, at the wellhead and pumpjack, and finally through to the pipeline and mid-stream market. CES's business model is relatively asset light and requires limited reinvestment 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.
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