Xtreme Drilling Corp. ("Xtreme", the "Company") (TSX:XDC) today announced the final results of its "modified Dutch auction" substantial issuer bid (the "Offer") to purchase for cancellation up to CAD$25 million of its common shares ("Shares"), which expired at 5:00 p.m. (Eastern time) on June 1, 2017.
Based on the final count by Computershare Trust Company of Canada, the depositary for the Offer (the "Depositary"), Xtreme has taken up and paid for 10,416,666 Shares at a price of CAD$2.40 per Share (the "Purchase Price"), for an aggregate cost of CAD$25 million excluding fees and expenses relating to the Offer.
The Shares purchased under the Offer represent approximately 12.24% of the Shares issued and outstanding prior to giving effect to the Offer. After giving effect to the Offer, the number of issued and outstanding Shares is 74,699,701.
Based on the final count by the Depositary, a total of 18,211,008 Shares were properly tendered and not properly withdrawn at the Purchase Price. However, as the Offer was oversubscribed, successfully tendering shareholders had approximately 57% of their successfully tendered Shares purchased by the Company, other than "odd lot" tenders, which were not subject to pro-ration. Payment for the purchased Shares will be effected by the Depositary in accordance with the Offer and applicable law. Any Shares tendered and not purchased will be returned to shareholders promptly by the Depositary.
Matt Porter, President and CEO of Xtreme commented that, "Xtreme is happy to have achieved its goal of returning meaningful value to the shareholders. In addition to those Shares tendered at the Purchase Price, there were approximately another 13.5 million Shares tendered at or below CAD$2.80 but above the Purchase Price.
While these Shares are not being taken-up under the terms of the Offer, the Company believes this indicates that many of its shareholders are aligned with our view that the Shares are fundamentally undervalued at prices that they have been trading in recent months." Mr. Porter also commented that, "the Company is further dedicated to enhancing shareholder value through the other ongoing initiatives, including the 850XE rig upgrades, XDR 500 optimization and pursuing strategic opportunities for the XDR 200 and XDR 300 rigs."
Xtreme designs, builds, and operates a fleet of high specification AC drilling rigs featuring leading-edge proprietary technology. Currently Xtreme operates one service line - Drilling Services (XDR) under contracts with oil and natural gas exploration and production companies and integrated oilfield service providers in Canada and the United States. For more information about the Company, please visit www.xdccorp.com.
SOURCE: Xtreme Drilling Corp.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.