High Arctic Overseas Plans Strategic Share Buyback Initiative
High Arctic Overseas Initiates Normal Course Issuer Bid
High Arctic Overseas Holdings Corp. (TSXV: HOH) has recently taken a significant step to enhance shareholder value by announcing its intention to conduct a Normal Course Issuer Bid (NCIB). This initiative, permitted by the TSX Venture Exchange, allows the Corporation to repurchase shares over a specified time frame.
Details of the Share Repurchase Program
The Corporation's NCIB is set to commence on June 20, 2025, and continue for a full year. During this period, High Arctic Overseas aims to buy back a total of up to 622,408 Common Shares, which represents approximately 5% of its outstanding shares as of mid-June 2025. The purchase price for these shares will be determined by market conditions at the time of buyback implementation.
Management’s Role in Purchase Decisions
The management team at High Arctic Overseas will carefully oversee the timing and quantity of shares repurchased under this bid based on various market factors. These purchases will be executed by ATB Capital Markets on behalf of the Corporation. Additionally, the Corporation may implement a pre-defined automatic securities purchase plan with ATB Financial. This strategic plan will facilitate share repurchase during times when the Corporation typically does not engage in active market dealings due to regulatory constraints.
Funding and Cancellation of Shares
All share buybacks will occur on the open market, utilizing funding from the Corporation's working capital. These acquired shares will be cancelled afterward, effectively reducing the total supply of shares in circulation and potentially enhancing the value for remaining shareholders.
Rationale Behind the Issuer Bid
The Board of Directors at High Arctic Overseas believes that the current market price of its Shares may not fully reflect the company’s true value. The strategic decision to buy back shares is intended to reinforce confidence in the Corporation’s financial health and prospects. With share repurchases, the company aims to increase the equity interest of existing shareholders and return capital efficiently.
About High Arctic Overseas Holdings Corp.
High Arctic Overseas is recognized as a leading provider of drilling and specialized well completion services in Papua New Guinea. It offers an extensive range of manpower solutions and a variety of equipment rentals, including rig mats, camps, materials handling, and a range of drilling support solutions to its clients.
Contact Information for Inquiries
Interested parties can reach out for more information regarding the share buyback or other corporate matters:
Mike Maguire
Chief Executive Officer
(587) 320-1301
High Arctic Overseas Holdings Corp.
Suite 2350, 330 5th Avenue SW
Calgary, Alberta, Canada T2P 0L4
Email: info@higharctic.com
Website: www.higharctic.com
Frequently Asked Questions
What is a Normal Course Issuer Bid?
A Normal Course Issuer Bid is a program that allows a company to repurchase its own shares from the market in order to reduce the number of shares outstanding and increase the value of remaining shares.
Why is High Arctic Overseas conducting a share buyback?
The Corporation believes that its shares are undervalued in the current market and aims to enhance shareholder value through this strategic buyback plan.
Who will manage the share repurchase process?
Management of High Arctic Overseas, along with ATB Capital Markets, will oversee the share repurchase, determining the timing and quantity of shares bought back.
How many shares will be repurchased under this program?
The Corporation intends to buy back up to 622,408 Common Shares over the course of the NCIB.
Where will the funds for the share buyback come from?
Funds for the share repurchase will come from the working capital of High Arctic Overseas, ensuring the buyback does not adversely affect its operating capabilities.
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