Mr. Ken Zinger reports
CES ENERGY SOLUTIONS CORP. ANNOUNCES RENEWAL OF NORMAL COURSE ISSUER BID
The Toronto Stock Exchange has accepted CES Energy Solutions Corp.'s notice of its intention to implement a normal course issuer bid (NCIB). The NCIB effectively renews the previous NCIB, which will terminate on July 18, 2025, when, pursuant to the corporation's automatic securities purchase plan instructions, the maximum number of issued and outstanding common shares of the corporation will be repurchased.
Under the previous NCIB, 19,198,719 common shares will have been acquired through market purchases on the TSX and other alternative Canadian securities trading platforms at a volume-weighted average purchase price of approximately $7.46 per common share.
CES's board of directors and management continue to believe that, from time to time, the market price of CES's common shares do not reflect their underlying value. Accordingly, the renewal of CES's 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, 2025, there were 220,107,663 issued and outstanding common shares and a public float of 189,115,243 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 18,911,524 common shares, being 10.0 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 22, 2025, and will terminate on the earlier of July 21, 2026, or the date on which the maximum number of common shares which can be acquired pursuant to the NCIB has been purchased.
Under TSX rules, CES may repurchase up to 146,864 common shares on any single trading day on the TSX, being 25 per cent of the average daily trading volume of the common shares on the TSX for the six months ended June 30, 2025. 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 life cycle of the oil field. 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 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.
We seek Safe Harbor.
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