Enerchem announced today that the Toronto Stock Exchange ("TSX") has accepted Enerchem's Notice of Intention to make a Normal Course Issuer Bid to purchase for cancellation, from time to time, as Enerchem considers advisable, up to a maximum of 500,000 common shares of the Corporation.
The maximum number of Common Shares to be purchased pursuant to the Bid represents approximately 3.7% of the issued and outstanding Common Shares, which are not held by insiders of the Corporation, on the date hereof. At the date hereof, there are 15,017,373 Common Shares issued and outstanding of which 1,458,076 Common Shares are held by senior officers or directors of Enerchem or any persons or companies who beneficially own, or exercise control or direction over, more than 10% of the issued and outstanding Common Shares. Purchases of Common Shares will be made on the open market through the facilities of the TSX. The price which Enerchem will pay
The actual number of Common Shares that may be purchased for cancellation and the timing of any such purchases will be determined by Enerchem; however, the maximum Common Shares that the Corporation may purchase for cancellation per trading day is 2,254, which is equal to 25% of the average daily trading volume for the six months ended June 30, 2009. The average daily trading volume for the six months ended June 30, 2009 was 9,018 (Common Shares purchased in the last six months pursuant to the Corporation's Current NCIB were excluded from the calculation of the average daily trading volume).
The Bid will commence on July 15, 2009 and will terminate on July 14, 2010 or such earlier time as the Bid is completed or terminated at the option of Enerchem. HSBC Securities (Canada) Inc. has agreed to act on the Corporation's behalf to make purchases of Common Shares pursuant to the Bid. The Bid is a renewal of the normal course issuer bid (the "Current Bid") commenced by the Corporation on July 15, 2008, which is set to expire on July 14, 2009. Under the Current Bid the Corporation has purchased for cancellation 198,700 Common Shares to the date hereof as a weighted average price of $1.48 per Common Share.
Management of Enerchem believes that, from time to time, the market price of the Common Shares may not fully reflect the underlying value of the Common Shares and that at such times the purchase of Common Shares would be in the best interests of Enerchem. Such purchases will increase the proportionate interest of, and may be advantageous to, all remaining shareholders. In addition, the purchases by Enerchem may increase liquidity to shareholders wishing to sell their Common Shares.
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