TORONTO, June 3, 2022 /CNW/ – Geodrill Limited (“Geodrill” or the “Company”) (TSX: GEO), a leading West Africa-based drilling company, today announced that the Toronto Stock Exchange (“TSX “) has accepted its notice of intention to renew its normal course issuer bid (the “New Program Issuer Bid”) to purchase outstanding common shares of the Company (the “Common Shares”) on the open market in accordance with the rules of the TSX. Such purchases will take place from time to time and will aggregate up to 2,274,570 Ordinary Shares (i.e. approximately 5% of the issued and outstanding Ordinary Shares of the Company) over a 12 month period commencing on June 7, 2022 and ending on June 6, 2023. The new NCIB program was approved by the shareholders of the Company on May 9, 2022. From June 2, 2022under the previous notice of intention to make a normal course issuer bid, pursuant to which the Company sought and received approval from the TSX to purchase up to 2,250,820 common shares for the period of June 7, 2021 at June 6, 2022, the Company has not purchased any Ordinary Shares on the open market. From June 2, 2022Geodrill had 46,821,400 common shares issued and outstanding and 15,932,454 common shares in the public.
Any redemption under the new NCIB program will be made in Canada through the facilities of the TSX or other Canadian trading systems. Geodrill will pay the prevailing market price at the time of purchase (with a maximum purchase price not to exceed 105% above the 5-day VWAP) or any other price permitted by the TSX. The actual number of common shares repurchased under the new NCIB program and the timing of such repurchases will be at the discretion of Geodrill and will be subject to the limits set forth in the TSX Company Handbook. Daily purchases on the TSX will be limited to 6,981 common shares, or 25% of 27,926 (the average daily trading volume on the TSX for the previous six months ending May 31, 2022), other than bulk purchase exceptions. Ordinary Shares redeemed by Geodrill will be cancelled.
Geodrill’s management and board of directors believe that the underlying value of the Company may not be reflected in the market price of common stock from time to time and therefore the purchase of common stock will increase the proportionate interest in the company. and be beneficial to all remaining shareholders of the Company.
About Geodrill Limited
Geodrill succeeded in establishing a leading position in the market Ghana, Burkina Faso and Ivory Coast. The Company also operates in other African jurisdictions including mali and Egypt and expands its geographical presence in South America. With the largest fleet of general-purpose drilling rigs, Geodrill provides a wide selection of diverse drilling services, including exploration, delineation, underground drilling and grade control, to meet the specific needs of its customers. The Company’s client base is made up of large mining, intermediate and junior exploration companies.
This press release may contain “forward-looking information” which may include, but is not limited to, the completion of the New NCIB program, the impact the New NCIB program will have on Common Stock, benefits to existing shareholders of the New NCIB program, the future financial or operating performance of the Company, its subsidiaries, future growth, results of operations, performance, business prospects and opportunities. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is planned”, “budget”, “expected”, “estimates”, “forecasts”. “, “intends”, “anticipates” or “believes”, or variations (including negative variations) of these words and expressions, or by the use of words or expressions indicating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be carried out.
Forward-looking statements are based on certain assumptions and analyzes made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments and other factors it deems appropriate, which assumptions include , but are not limited to the market price of Common Shares, the availability of Common Shares for redemption on the TSX or other Canadian trading venues and the availability of funds for redemption of Common Shares. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. -the forward-looking statements contained in this press release, including, without limitation, those described in the management report for the quarter ended March 31, 2022 and the annual information form of the Company dated March 28, 2022 under “Risk Factors”. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in these forward-looking statements, there may be other factors that could cause actual actions, events or results different from those anticipated, estimated or expected. Should one or more of these risks or uncertainties materialize, or should assumptions underlying these forward-looking statements prove incorrect, actual results, performance or achievements may differ materially from those expressed or implied by the forward-looking statements contained in this press release. The forward-looking information and forward-looking statements contained herein are made as of the date of this press release, and the Company disclaims any obligation to update or revise such information or statements, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Geodrill Limited
For further information: Joanna Longo, Terre Partners, (416) 238-1414 ext. 233, [email protected]