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VAL-D'OR, QC, Oct. 28, 2024 /CNW/ - Orbit Garant Drilling Inc. (TSX: OGD) ("Orbit Garant" or the "Company"), one of the Canada's largest drilling services companies primarily serving the mining industry, announced today that the Toronto Stock Exchange ("TSX") has accepted its notice of intention to make a normal course issuer bid (the "NCIB Program") to purchase outstanding common shares of Orbit Garant (the "Common Shares") on the open market in accordance with the rules of the TSX. Pursuant to the NCIB Program, Orbit Garant may purchase, from time to time, in aggregate up to 1,868,637 Common Shares (being approximately 5% of the 37,372,756 issued and outstanding Common Shares of Orbit Garant as of October 22, 2024) over a 12-month period commencing on October 31, 2024, and terminating on October 30, 2025.
Any repurchases under the NCIB Program will be made in Canada through the facilities of the TSX and/or alternative Canadian trading systems. Orbit Garant will pay the prevailing market price at the time of purchase. The actual number of Common Shares repurchased under the NCIB Program and the timing of such repurchases will be at Orbit Garant's discretion and shall be subject to the limitations set out in the TSX Company Manual. Daily purchases on the TSX will be limited to 3,532 Common Shares, other than block purchase exceptions, which represents 25% of the average daily trading volume of the Common Shares on the TSX for the six-month period ending September 30, 2024, being 14,130 Common Shares. The Common Shares repurchased by Orbit Garant will be cancelled. Management and the Board of Directors of Orbit Garant believe that the underlying value of Orbit Garant may not be reflected in the market price of the Common Shares from time to time and that, accordingly, the purchase of Common Shares will increase the proportionate interest in Orbit Garant of, and be advantageous to, all remaining shareholders of Orbit Garant.
In connection with the NCIB Program, Orbit Garant will establish an automatic securities purchase plan (the "Plan") with its designated broker to facilitate the purchase of Common Shares under the NCIB Program at times when the Company would ordinarily not be permitted to purchase its Common Shares due to regulatory restrictions or self-imposed blackout periods. Under the Plan, before entering a self-imposed blackout period, Orbit Garant may, but is not required to, ask the designated broker to make purchases under the NCIB Program within specified parameters. Outside of the pre-determined blackout periods, Common Shares may be purchased under the NCIB Program based on the discretion of the Company's management, in compliance with TSX rules and applicable securities laws. The Company may elect to suspend or discontinue its NCIB Program at any time. The Plan will be effective as of October 31, 2024.