CALGARY, July 11, 2019
CALGARY, July 11, 2019 /CNW/ - CES Energy Solutions Corp. ("CES" or the "Corporation") (TSX: CEU and OTC - Nasdaq Intl: CESDF) is pleased to announce that the Toronto Stock Exchange (the "TSX") has accepted CES's notice of its intention to implement a normal course issuer bid ("NCIB"). The NCIB effectively renews the existing NCIB which is scheduled to terminate on July 16, 2019.
CES's Board of Directors and management continue to believe that the market price of CES's common shares do not reflect their underlying value. Accordingly, the renewal of CES' NCIB will allow CES to opportunistically reduce the issued and outstanding common shares of the Corporation (the "Common Shares") and enhance shareholder value.
Pursuant to the renewed NCIB, CES may purchase through the facilities of the TSX and other alternative securities trading platforms, from time to time over the next 12 months, up to 18,649,192 Common Shares, being 7.5% of the public float of Common Shares. Common Shares purchased under the NCIB will be subsequently cancelled by the Corporation. The NCIB will commence on July 17, 2019 and will terminate the earlier of July 16, 2020 or on date on which the maximum number of Common Shares which can be acquired pursuant to the NCIB are purchased.
Under TSX rules, CES may repurchase up to 169,680 Common Shares on any single trading day, being 25% of the average daily trading volume of the Common Shares for the six months ended June 30, 2019. The Corporation is also permitted to make one block purchase in excess of the daily maximum per calendar week. CES may enter into an automatic securities purchase plan in connection with the NCIB which would permit the Corporation to repurchase its Common Shares during periods of blackout or other periods in which the Corporation would not ordinarily be permitted to repurchase its Common Shares. Such automatic securities purchase plan would be subject to certain parameters set by the Corporation from time to time which would govern the automatic purchase of Common Shares.
As of July 4, 2019, there were 265,765,579 issued and outstanding Common Shares. Under the current NCIB that is scheduled to terminate on July 16, 2019, the Corporation was approved by the TSX to repurchase up to 24,587,978 Common Shares, being 10% of the public float of Common Shares. As of July 4, 2019, the Corporation has repurchased and subsequently cancelled 7,873,003 Common Shares, or 3.2% of Common Shares available for repurchase, through market purchases on the TSX and other alternative securities trading platforms, at a volume-weighted average purchase price of approximately $3.45 per Common Share.
Declaration of Cash Dividend
CES is also pleased to announce today that it will pay a cash dividend $0.005 per common share on August 15, 2019 to the shareholders of record at the close of business on July 31, 2019.
Q2 2019 Conference Call Details
CES also announced today that it will conduct its Q2 2019 conference call on August 9, 2019 following the upcoming release of its financial results for the second quarter ended June 30, 2019. The Q2 2019 results are expected to be released after the close of market the day before the conference call. Tom Simons, President and Chief Executive Officer of CES, will host the call.
August 9, 2019
9:00 a.m. MT
(855) 327-6838 or (416) 915-3239
A replay of the conference call will be accessible on the Corporation's Investor Relations website at www.cesenergysolutions.com by selecting "News Releases".
About CES Energy Solutions Corp.
CES is a leading provider of technically advanced consumable chemical solutions throughout the lifecycle of the oilfield. This includes solutions at the drill-bit, at the point of completion and stimulation, at the wellhead and pump-jack, and finally through to the pipeline and midstream market. CES' business model is relatively asset light and requires limited re-investment capital to grow. As a result, CES has been able to capitalize on the growing market demand for drilling fluids and production and specialty chemicals in North America while generating free cash flow.
Forward Looking Information
This press release contains certain forward-looking statements and forward-looking information ("forward-looking information") within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "expect", "may", "will", "project", "should" or similar words suggesting future outcomes. In particular, this press release includes, without limitation, forward-looking information relating to the Corporation's: expectations regarding the implementation of the NCIB to repurchase and cancel common shares; future estimates as to dividend levels; the potential means of funding dividends and the NCIB; the intention to make future dividend payments and the business strategy regarding cash dividend payments in the future. CES believes the expectations reflected in such forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.
Forward-looking information is based on various assumptions. Those assumptions are based on information currently available to CES, and in particular certain forward looking information in this press release is based on the assumption that the conditions of the TSX can be satisfied and the TSX will grant final approval in respect of the NCIB.
Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties some of which are described herein. Any forward-looking information is made as of the date hereof and, except as required by law, CES assumes no obligation to publicly update or revise such information to reflect new information, subsequent or otherwise.
THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE CES Energy Solutions Corp.
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Tom Simons, President and Chief Executive Officer, CES Energy Solutions Corp., 403-269-2800; Anthony Aulicino, Chief Financial Officer, CES Energy Solutions Corp., 403-269-2800 Or by email at: email@example.comCopyright CNW Group 2019
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