Divestco Inc.

Divestco Inc.

January 24, 2008 14:13 ET

Divestco Announces Notice of Intention to Make a Normal Course Issuer Bid to January 27, 2009

CALGARY, ALBERTA--(Marketwire - Jan. 24, 2008) - DIVESTCO INC. (TSX:DVT) ("Divestco" or the "Corporation") announced that a Notice of Intention to make a Normal Course Issuer Bid has been filed with and accepted by the Toronto Stock Exchange to purchase up to 2,092,853 (a maximum of 5%) of its issued and outstanding Common Shares (41,857,070 Common Shares as at January 14, 2008) in a twelve-month period. The Issuer Bid will commence on the 28th day of January, 2008 and will terminate on the earlier of the 27th day of January, 2009 and the date on which the maximum number of Common Shares are purchased pursuant to the Issuer Bid. Purchases of Common Shares under the Issuer bid will be effected through the facilities of the Toronto Stock Exchange at the market price at the time of purchase. The Common Shares will be purchased for cancellation. Purchases under the previous normal course issuer bid totaled 276,900 Common Shares at an average weighted price of $2.18. The Average Daily Trading Volume for the prior six months was 61,671 Common Shares. (25% of the Average Daily Trading Volume is 15,418 Common Shares.)

The Corporation's board of directors and management believe that the purchase by the Corporation of its outstanding Common Shares pursuant to the Normal Course Issuer Bid constitutes a prudent investment of corporate funds and a sound business decision in relation to alternative investment opportunities presently available to the Corporation as, in their opinion, the shares are undervalued when considered against the assets and liabilities of the Corporation and in light of its current and potential earnings. Presently Common Shares of Divestco are listed for trading on the Toronto Stock Exchange.

Divestco is a growth-oriented company that provides a comprehensive and integrated portfolio of data, software, services and consulting to the oil and gas industry. Through continued commitment to align and bundle products and services to generate value for our customers, Divestco is creating an unparalleled set of integrated solutions and unique benefits for the marketplace. Divestco is headquartered in Calgary, Alberta, Canada and trades on the Toronto Stock Exchange under the symbol "DVT".

Contact Information

  • Divestco Inc.
    Mr. Stephen Popadynetz
    Chief Executive Officer
    (403) 218-6466
    Divestco Inc.
    Mr. Roderick Chisholm
    Chief Financial Officer
    (403) 218-6450
    Website: www.divestco.com