Petroflow Energy Ltd. reports that it intends to conduct a normal course issuer bid, through the facilities of the TSX to purchase for cancellation up to 500,000 Common Shares, representing approximately 1.69% of its issued and outstanding share capital. The Company previously commenced an NCIB effective December 22, 2008 through the facilities of the TSX Venture Exchange. As a result of listing its shares on the TSX, the Company has initiated a new NCIB. The Company plans to fund its share repurchases under the NCIB from cash flow and available financing under its bank loan. The board of directors of the Company is of the view that the current market value of the Common Shares does not reflect their underlying value.
The directors of the Company have thus concluded that the purchase of Common Shares under this NCIB is an appropriate use of the Company's funds and is in the best interests of the Company. The NCIB will increase the proportionate share interest in the Company of those shareholders who retain their Common Shares. All Common Shares purchased by the Company will be restored to the status of authorized but unissued shares, thereby increasing the respective proportionate share interests of all remaining shareholders on a pro rata basis. The NCIB also affords an increased degree of liquidity to the Company's shareholders who elect to dispose of their Common Shares.
It is expected that the NCIB will commence on February 6, 2009 and will continue until February 5, 2010 or such earlier date if the Company purchases the maximum number of Common Shares. Purchases will be made through Leede Financial Markets Inc. Under the rules of the TSX, the Company may purchase a maximum of 1,829 Common Shares per day on or before March 31, 2009 pursuant to TSX Staff Notice 2008-0005, and 1000 Common Shares per day thereafter. As of February 3, 2009, the Company had 29,565,094 Common Shares issued and outstanding.
Pursuant to the previous NCIB, the Company repurchased 6,000 Common Shares through the facilities of the TSX Venture Exchange, at a weighted average price of $2.195 per Common Share.
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