Wednesday, June 29 2022


NOT FOR DISTRIBUTION TO US WIRE SERVICES OR FOR DISTRIBUTION IN THE UNITED STATES

CALGARY, Alberta, December 21, 2021 (GLOBE NEWSWIRE) – Canacol Energy Ltd. (“Canacol” or the “Company”) (TSX: CNE) (OTCQX: CNNEF) (BVC: CNEC) is pleased to announce that the Toronto Stock Exchange (“TSX”) has accepted the Company’s Notice carry out a normal course issuer bid in accordance with the rules of the TSX.

As approved by the TSX, the Company is authorized to purchase up to 10,513,661 common shares, representing approximately 10% of the free float of Canacol, or 105,136,617 common shares as of December 21, 2021. As of December 21, 2021, it there were 176,656,422 common shares outstanding. The maximum number of common shares that Canacol can purchase on any given day is 43,316 common shares, which represents 25% of the average daily trading volume of the Company on the TSX for the six-month period ended November 30, 2021 of 173,264 shares. ordinary. Canacol may also make a weekly block redemption that exceeds the daily limit subject to prescribed rules. The Company has appointed Eight Capital as the broker to carry out the NCIB transactions.

The Company is authorized to make purchases during the period from December 24, 2021 to December 23, 2022, or until the public tender offer is completed or terminated at the option of the Company. All Common Shares purchased by the Company under the Offer will be purchased on the open market through the TSX and / or alternative trading systems, at the prevailing market price at the time of the transaction. All common shares acquired under the public tender offer will be canceled. The funds necessary to purchase the common shares will come from the working capital of the Company.

The company’s previous issuer bid will expire on December 23, 2022. Pursuant to the previous issuer bid, the company has obtained approval from the TSX to purchase up to 11,341,964 common shares. represented 10% of the company’s free float at the time of approval. The Company purchased on the open market and canceled a total of 3,348,500 common shares at a weighted average price of $ 3.24 per common share under the previous issuer bid.

Canacol has also entered into an Automatic Stock Purchase Plan (“ASPP”) with its designated broker. The ASPP aims to allow the purchase of shares as part of the public tender offer at times when the company is not normally permitted to purchase shares due to regulatory restrictions and customary blackout periods. self-imposed.

In accordance with the ASPP, the designated broker may purchase shares until the expiration of the public tender offer on December 23, 2024. Such purchases will be determined by the broker in its sole discretion based on the parameters of purchases made by the Company in accordance with the rules of the Toronto Stock Exchange (the “TSX”), applicable securities laws and the terms of the RPPA. The ASPP has been pre-authorized by the TSX and will be effective on the date of the public tender offer. The ASPP will terminate on the earlier of the following dates: (i) the NCIB expires; (ii) the maximum number of Shares has been purchased under the ASPP; and (iii) the Company terminates the ASPP in accordance with its terms.

Other than the ASPP, shares may continue to be purchased under the public tender offer at the discretion of management, in accordance with TSX rules and applicable securities laws. All purchases made under the ASPP will be included in the number of Shares available for purchase under the NCIB.

The Company believes that from time to time the market price of its Common Shares may not reflect their underlying value and that, at that time, the purchase of Common Shares for cancellation will increase the proportionate interest of all remaining shareholders and will benefit them. . In addition, purchases made by Canacol as part of the public tender offer may increase liquidity for shareholders wishing to sell their common shares.

This press release does not constitute an offer to sell securities, or the solicitation of an offer to buy securities, in any jurisdiction. All sales will be made through securities dealers registered in the jurisdictions where the offer has qualified for distribution. The securities offered are not and will not be registered under the securities laws of the United States of America or any state thereof and may not be sold in the United States of America without registration in the United States. United States or the availability of an exemption from such registration.

About Canacol

Canacol is a natural gas exploration and production company whose activities are concentrated in Colombia. The Company’s common shares trade on the Toronto Stock Exchange, the OTCQX in the United States of America and the Colombia Stock Exchange under the symbols CNE, CNNEF and CNE.C, respectively.

Forward-looking statements

Certain statements contained in this press release are “forward-looking statements”, which reflect the current expectations of Canacol management regarding future events or the future performance of Canacol. All statements other than statements of historical fact contained in this press release may be forward-looking statements. In particular, the forward-looking information and statements contained in this document include, but are not limited to, the NCIB offer. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in the forward-looking statements. Canacol believes that the expectations reflected in these forward-looking statements are reasonable, but no assurance can be given that such expectations will prove to be correct and one should not place undue reliance on such forward-looking statements. Forward-looking statements are expressly qualified in their entirety by this cautionary statement. Forward-looking statements are made as of the date of this press release and Canacol assumes no obligation to update or revise them to reflect new events or circumstances, except as expressly required by applicable securities laws. Further information regarding the risks and uncertainties associated with Canacol and its securities can be found in the disclosure documents filed by Canacol with securities regulatory authorities, available at www.sedar.com.



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