Base Carbon's Normal Course Issuer Bid Renewal Strategy Explained
Base Carbon Announces Renewal of Normal Course Issuer Bid
Base Carbon Inc. with operations through its subsidiary, Base Carbon Capital Partners Corp., has shared exciting news regarding its renewed normal course issuer bid, or NCIB. This program allows the company to repurchase shares, fostering shareholder value and reflecting its commitment to sound financial management.
Details of the Renewal
The renewed NCIB, approved by Cboe Canada, enables Base Carbon to acquire up to 6,659,310 common shares for cancellation. This marks a proactive step for Base Carbon as it continues its third consecutive year of share repurchases, reinforcing its belief that the current market price does not fully reflect the company’s underlying value. In a previous NCIB period, the company successfully bought back 7,127,736 shares at an average price of $0.4722.
Timelines and Purchase Conditions
The new NCIB will commence on June 23, 2025, and will remain active until June 22, 2026, or until the maximum number of shares has been acquired. This allows for a transparent and structured approach to share buybacks, ensuring compliance with regulatory standards as the company navigates through the fluctuating market landscape.
Order Volume and Trading Flexibility
Under the renewed NCIB, Base Carbon may purchase a maximum of 69,082 shares on any given day. This number is tailored to be 25% of the average daily trading volume over the past six months, excluding prior purchases under the last NCIB. Importantly, provisions for block trades also exist, allowing for larger purchases weekly, which provides the company with greater flexibility in executing its strategy.
Rationale Behind the NCIB
The Board of Directors has determined that the current market may undervalue Base Carbon's shares, prompting this action. By repurchasing shares, the company not only aims to improve the shareholder return but also intends to signal confidence in its growth trajectory and operational health, especially as it endeavors to seize opportunities within the carbon market.
Automatic Share Purchase Plan
Base Carbon has implemented an automatic share purchase plan (ASPP) to ensure that share repurchases can occur effectively, even during periods when traditional trading might be restricted due to insider trading regulations. This plan allows for continued buybacks in a structured manner, enhancing the potential of the NCIB while adhering to adherence standards.
Commitment to Shareholder Value
The implementation of an ASPP showcases Base Carbon's commitment to shareholder value. During the ASPP's active phase, purchases will be made based on parameters established by the company to ensure fairness and compliance with securities laws, preserving the integrity of the process.
About Base Carbon
Base Carbon is dedicated to project financing primarily in the global voluntary carbon markets. The company strives to become the preferred partner for carbon project finance, leveraging its management resources and capital to advance global carbon removal and abatement projects. As environmental initiatives evolve, Base Carbon is committed to enhancing trading transparency and operational efficiencies within this sector.
Frequently Asked Questions
What is the purpose of the NCIB?
The NCIB aims to repurchase shares to enhance shareholder value and reflect the company's underlying market position.
How many shares can Base Carbon repurchase under the NCIB?
Under the renewed NCIB, Base Carbon can acquire up to 6,659,310 shares over a 12-month period.
When will the new NCIB start?
The new NCIB will begin on June 23, 2025, and continue until June 22, 2026.
What is the automatic share purchase plan (ASPP) for?
The ASPP facilitates share repurchases during periods when the company cannot trade due to regulatory constraints.
Why is the share repurchase strategy important?
This strategy helps manage stock price volatility and allows Base Carbon to signal confidence in its business growth and operational strength.
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