Proactive Investors - Africa Oil Corp (TSX:AOI) told investors that the Toronto Stock Exchange (TSX) has approved its normal course issuer bid (NCIB) to buy back up to 38,654,702 shares, or 10% of its public float.
In a statement, the Canadian oil and gas company said it believes the repurchase and cancellation of shares represents an effective use of its capital and an efficient way to return value to shareholders.
Under the NCIB, Africa Oil said the share repurchases will occur over 12 months, starting from December 6, 2023, and ending on the earlier of December 5, 2024, the date on which it has purchased the maximum number of shares permitted under the NCIB, and the date on which the program is terminated by the company.
Africa Oil noted that on Nasdaq Stockholm it may only repurchase up to 25% of the average daily trading value of its shares for the 20 days preceding the date of purchase, subject to certain exceptions for block purchases.
Also, daily purchases on the TSX are limited to 96,006 shares — 25% of its average daily TSX trading volume of 384,024 shares during the six months ended November 30, 2023, and also subject to certain exceptions for block purchases and other prescribed exemptions available under applicable Canadian securities laws.
The company said the buybacks will be conducted on the open market and that it will determine the number of shares to be repurchased as well as the timing.
Africa Oil previously purchased a total of 20,512,373 common shares out of the 40,482,356 shares authorized under a previous NCIB, which commenced on September 27, 2022 and ended on September 26, 2023, at a volume-weighted average price per share of C$3.10.