Profound Energy Inc.

Profound Energy Inc.

February 24, 2009 15:21 ET

Profound Energy Inc. Announces Normal Course Issuer Bid

CALGARY, ALBERTA--(Marketwire - Feb. 24, 2009) - Profound Energy Inc. ("Profound") (TSX:PFX) announced today that the Toronto Stock Exchange (the "Exchange") has accepted its Notice to Make a Normal Course Issuer Bid (the "Bid") to purchase, from time to time, as it considers advisable, up to 2,157,336 of its 37,209,008 currently issued and outstanding common shares (being no greater than 10% of the public float of 21,573,357 common shares) on the open market through the facilities of the Toronto Stock Exchange. The price that Profound will pay for any shares purchased by it will be the prevailing market price of such shares on the Toronto Stock Exchange at the time of such purchase. Common shares acquired under the Bid will be cancelled.

The Bid will commence on February 1, 2009 and will terminate on January 31, 2010 or such earlier time as the Bid is completed or terminated at the option of Profound. The daily limit on purchases under the Bid is 30,093 common shares, based on 25% of Profound's average daily trading volume for the prior six months of 120,371 common shares, except that until March 31, 2009, the daily maximum limitation shall be 50% of such average daily trading volume or 60,186 shares in accordance with the discretionary relief granted by the Exchange.

The Bid is a renewal of Profound's normal course issuer bid (the "Current Bid") which was commenced by Profound on February 1, 2008, and which is set to expire on January 31, 2009. Under the Current Bid, Profound has purchased for cancellation an aggregate of 130,200 common shares to the date hereof at a weighted average price of $1.15 per common share.

Profound believes that the acquisition of its common shares represents an appropriate use of funds as the market price of its common shares represents a discount to the fair value of such shares. The purchase of common shares will increase the proportionate interest of, and be advantageous to, all remaining shareholders. In addition, the purchases by Profound may increase liquidity to Profound's shareholders wishing to sell their common shares.

Contact Information

  • Profound Energy Inc.
    Evelyn Burnett
    Vice President Finance and Chief Financial Officer
    (403) 513-1388