Alvopetro Announces Approval of Normal Course Issuer Bid and Automatic Share Purchase Plan
Alvopetro Energy Ltd. (TSXV: ALV; OTCQX: ALVOF) disclosed that it has received approval from the TSX Venture Exchange for its Normal Course Issuer Bid (NCIB) and the establishment of an automatic share purchase plan. The NCIB will allow Alvopetro to repurchase up to 6,577,562 common shares, representing approximately 10% of the public float as of October 7, 2021. This strategic move demonstrates Alvopetro’s commitment to enhancing shareholder value and maintaining an efficient capital structure.
The purpose of the NCIB is to provide Alvopetro with the flexibility to repurchase its common shares if management believes that the market price does not reflect the underlying value of the company. By repurchasing shares at opportune times, Alvopetro can return capital to shareholders and improve the company’s overall financial position. Furthermore, the NCIB can support the share price by reducing the number of outstanding shares, potentially leading to increased earnings per share for existing shareholders.
To facilitate the repurchases under the NCIB, Alvopetro has implemented an automatic share purchase plan in accordance with the rules of the TSX Venture Exchange and applicable securities legislation. This plan allows for the repurchase of shares during certain blackout periods when Alvopetro would ordinarily not be permitted to buy back its shares due to self-imposed trading blackout restrictions.
The automatic share purchase plan is intended to provide more routine and consistent repurchases of shares under the NCIB, regardless of any trading blackout restrictions that may be in place. This structured approach enhances the company’s ability to execute share repurchases efficiently and effectively, benefiting both Alvopetro and its shareholders.
Alvopetro’s decision to pursue a Normal Course Issuer Bid and establish an automatic share purchase plan reflects the company’s confidence in its long-term growth prospects and commitment to creating value for shareholders. By leveraging these mechanisms, Alvopetro can optimize its capital structure, support its share price, and enhance shareholder returns over time. With a clear focus on enhancing shareholder value, Alvopetro reaffirms its dedication to prudent capital allocation and strategic decision-making.