SOURCE: Capital Power Corporation

Capital Power

April 25, 2016 08:00 ET

Capital Power Announces Approval of Normal Course Issuer Bid for Purchase of up to 8.6 Million of Its Common Shares

EDMONTON, AB--(Marketwired - April 25, 2016) - The Toronto Stock Exchange (TSX) has approved Capital Power Corporation's (TSX: CPX) ("Capital Power" or "the Company") normal course issuer bid ("NCIB") to purchase and cancel up to 8,615,068 of its outstanding common shares during the one-year period from April 28, 2016 to April 27, 2017.

As of April 22, 2016, Capital Power had 96,134,243 common shares issued and outstanding and 86,150,686 common shares issued and outstanding after excluding common shares beneficially owned by directors and executive officers of Capital Power and persons who beneficially own or exercise control or direction over more than 10% of the issued and outstanding common shares of Capital Power (the "Public Float"). The 8,615,068 common shares under the NCIB represent approximately 10% of the Public Float, and will be purchased only when and if the Company considers it advisable. 

Pursuant to TSX rules, the maximum number of common shares that may be repurchased during the same trading day on the TSX is 75,981 common shares (being 25% of the average daily trading volume of Capital Power common shares for the six months preceding the date of the NCIB notice to the TSX, which was equal to 303,926 common shares), subject to certain exceptions for block repurchases.

Capital Power purchased and cancelled 7,126,336 common shares at an average price of $19.91 under its prior NCIB approved by the TSX on March 25, 2015 for the period from April 7, 2015 to April 6, 2016.

Purchases will be made on behalf of the Company by a registered broker through the facilities of the TSX at prevailing market prices pursuant to the rules of the TSX governing normal course issuer bids and/or through alternative Canadian trading platforms or otherwise as may be permitted by the TSX or an applicable securities regulatory authority.

Capital Power believes that the market price of its common shares may, from time to time, not reflect the inherent value of the Company, and that purchases of common shares pursuant to the bid may represent an appropriate and desirable use of the Company's funds. Therefore, the Company believes that it is in the best interest to proceed with the NCIB.

About Capital Power Corporation

Capital Power (TSX: CPX) is a growth-oriented North American power producer headquartered in Edmonton, Alberta. The company develops, acquires, operates and optimizes power generation from a variety of energy sources. Capital Power owns more than 3,200 megawatts of power generation capacity at 18 facilities across North America. More than 700 megawatts of owned generation capacity is in advanced development in Alberta and Kansas.

Forward-looking Information

Forward-looking information or statements included in this news release are provided to inform the Company's shareholders and potential investors about management's assessment of Capital Power's future plans and operations. This information may not be appropriate for other purposes. The forward-looking information in this news release is generally identified by words such as "will", "anticipate", "believe", "plan", "intend", "target", and "expect" or similar words that suggest future outcomes. Information with respect to the NCIB and Capital Power's intentions to acquire common shares pursuant to the NCIB and expected dividend payments constitutes material forward-looking information. These statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments, and other factors it believes are appropriate. Whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results and experience to differ materially from the Company's expectations. Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

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