Bri-Chem Corp.

Bri-Chem Corp.

November 17, 2014 19:52 ET

Bri-Chem Announces Normal Course Issuer Bid

EDMONTON, ALBERTA--(Marketwired - Nov. 17, 2014) -


Bri-Chem Corp. ("Bri-Chem" or "Company") (TSX:BRY), a leading North American wholesale distributor and manufacturer of oil and gas drilling fluids, announced today that it is pleased to announce that Bri-Chem has received acceptance from the Toronto Stock Exchange ("TSX") in respect of its intention to make a Normal Course Issuer Bid (the "Bid").

The Bid will consist of the acquisition by Bri-Chem of up to 1,567,330 common shares of its capital stock, representing 10% of the public float of 15,673,295 common shares as of November 5, 2014. The average daily trading volume is 34,462 calculated using the prior six months trading volumes. There are currently 24,040,736 common shares of Bri-Chem issued and outstanding. The Bid is to commence on November 20, 2014, and will terminate on November 19, 2015 or earlier if the number of shares sought in the Bid have been obtained. Bri-Chem reserves the right to terminate the Bid earlier if it feels it is appropriate to do so. Except for block purchases permitted under the rules and policies of the TSX, the number of common shares to be purchased per trading day will not exceed 8,615, or approximately 25% of the average daily trading volume for the six full calendar months prior to November 5, 2014.

The Corporation has also entered into an "automatic securities purchase plan" (as defined under applicable Canadian securities laws) with Dundee Securities Ltd. for the purpose of making purchases under the Bid (the "Plan"). Purchases under the Bid will be determined by Dundee Goodman Private Wealth in its sole discretion, without consultation with the Company, subject to the limitations of the Plan and the rules of the TSX. The Plan constitutes an "automatic plan" for purposes of applicable Canadian securities laws and has been reviewed by the TSX. The Plan was established to provide standard instructions regarding how Bri-Chem's common shares are to be purchased under the Bid. Accordingly, Bri-Chem may purchase its common shares in accordance with the Plan on any trading day during the issuer bid including during self-imposed trading blackout periods. Bri-Chem may otherwise vary, suspend or terminate the Plan only if it does not have material non-public information and the decision to vary, suspend or terminate the Plan is not taken during a self-imposed trading blackout period and any variation, suspension or termination is made in accordance with the terms of the Plan.

The Board of Directors of the Company has authorized the Bid because it believes that it is an efficient use of the Company's financial resources to purchase common shares when the market price of the common shares does not fully reflect their underlying value.

Purchases will be made through the facilities of the TSX in accordance with its rules. The price that the Company will pay for any common shares purchased under the Bid will be the prevailing market price at the time of purchase and any common shares purchased by the Company will be cancelled. Bri-Chem will issue a news release if the Plan is terminated or materially amended prior to the expiry date.

About Bri-Chem

Bri-Chem has established itself, through a combination of strategic acquisitions and organic growth, as the North American industry leader for the distribution and blending of oilfield drilling, completion, stimulation and production chemical fluids. We sell, blend, package and distribute a full range of drilling fluid products, cementing, acidizing and stimulation additives from 34 strategically located warehouses throughout Canada and the United States. We have been an operating in Canada since 1985 and expanded into the United States in 2011 and as a result of the increasing market demand for oilfield chemicals we have experienced significant market penetration within the North American oil and gas industry. Additional information about Bri-Chem is available at or at Bri-Chem's website at

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Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

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