CALGARY, ALBERTA--(Marketwired - March 13, 2014) -
NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Parex Resources Inc. ("Parex" or the "Company") (TSX:PXT) announced today that the Toronto Stock Exchange (the "TSX") has approved the renewal of the Company's normal course issuer bid (the "Prior Bid"), which will terminate on March 17, 2014. Pursuant to the Prior Bid the Company purchased an aggregate of 352,400 common shares of the Company at a volume weighted average price of $4.39 per common share.
The renewed normal course issuer bid (the "Bid"), pursuant to which Parex will purchase for cancellation, from time to time, as it considers advisable, up to a maximum of 10,076,576 common shares of the Company, will commence on March 18, 2014 and will terminate on March 17, 2015 or such earlier time as the Bid is completed or terminated at the option of Parex.
The maximum number of common shares to be purchased pursuant to the Bid represents approximately 10.0% of the issued and outstanding common shares, which were not held by insiders of the Company, as of March 3, 2014. Purchases pursuant to the Bid will be made on the open market through the facilities of the TSX. The number of common shares that can be purchased pursuant to the Bid is subject to a daily maximum of 65,856 common shares (which is equal to 25% of the average daily trading volume from September 1, 2013 to February 28, 2014). The price that Parex will pay for any common shares under the Bid will be the prevailing market price on the TSX at the time of such purchase. Common shares acquired under the Bid will be cancelled.
FirstEnergy Capital Corp. has agreed to act on the Company's behalf to make purchases of common shares pursuant to the Bid. A copy of the Form 12 Notice of Intention to Make a Normal Course Issuer Bid filed by the Company with the TSX can be obtained from the Company upon request without charge.
Parex believes that the common shares have been trading in a price range which does not adequately reflect their value in relation to the Company's current operations and its growth prospects, and that, at such times, the purchase of common shares for cancellation will increase the proportionate interest of, and be advantageous to, all remaining shareholders.
As of the close of business on March 3, 2014, the Company had 109,427,024 common shares issued and outstanding.
This news release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in any jurisdiction.
Advisory on Forward Looking Statements
Certain information regarding Parex set forth in this document contains forward-looking statements that involve substantial known and unknown risks and uncertainties. The use of any of the words "plan", "expect", "intend", "believe", "should", "anticipate" or other similar words, or statements that certain events or conditions "may" or "will" occur are intended to identify forward-looking statements. These statements are only predictions and actual events or results may differ materially. Many factors could cause Parex' actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Parex. In particular, forward-looking statements contained in this document include, but are not limited to, statements with respect to the anticipated advantages to shareholders of the Bid. These forward-looking statements are subject to numerous risks and uncertainties, including but not limited to, the risk that the anticipated benefits of the Bid may not be achieved. Readers are cautioned that the foregoing list of factors is not exhaustive. Although the forward-looking statements contained in this document are based upon assumptions which Management believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this document, Parex has made assumptions regarding, among other things, the ability of the Company to achieve the benefits of the Bid. These forward-looking statements are made as of the date of this document and Parex disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
The TSX has not received and does not accept responsibility for the adequacy or accuracy of this news release.