Xtreme Drilling Corp. ("Xtreme", the "Company") (TSX:XDC) today announced the preliminary 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 pm. (Eastern time) on June 1, 2017. All the terms and conditions of the Offer have been complied with and, based on a preliminary count by Computershare Trust Company of Canada, as depositary for the Offer (the "Depositary"), Xtreme expects to take up and pay for approximately 10,416,666 Shares at a purchase price of CAD$2.40 per Share (the "Purchase Price").
The Shares expected to be 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 expected to be approximately 74,674,701. Shareholders of Xtreme had the opportunity to tender Shares until 5:00 p.m. (Eastern time) on June 1, 2017, by electing an auction tender at a price of their choice between CAD$2.40 and CAD$2.80 per Share (in increments of CAD$0.05 per Share) or, alternatively, by electing a purchase price tender at which they could sell their Shares at the Purchase Price determined by the Corporation pursuant to the Offer.
Approximately 18,207,008 Shares were properly tendered to the Offer and not withdrawn at the Purchase Price. As the Offer was oversubscribed, Xtreme will purchase Successfully Tendered Shares (as defined in the Offer) on a pro rata basis following determination of the final results of the Offer, except that "odd lot" tenders (of holders beneficially owning fewer than 100 Shares) will not be subject to pro-ration. Xtreme expects that tendering shareholders subject to pro-ration will have approximately 57% of their tendered Shares purchased by Xtreme under the Offer.
The number of Shares to be purchased under the Offer, the pro-ration factor and the Purchase Price are preliminary and are subject to verification by the Depositary. Xtreme expects to be able to release the final results of the Offer, including the final Purchase Price and pro-ration factor, on or before June 7, 2017.
A complete description of the Offer is contained in the offer to purchase and issuer bid circular dated April 18, 2017 and other related documents and schedules, including any amendments thereto, filed with the applicable Canadian Securities Administrators. The Offer documents are available free of charge on SEDAR at www.sedar.com or Xtreme's website at www.xdccorp.com. Payment for the purchased Shares will be made 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.
Xtreme Drilling Corp. ("XDC" on the Toronto Stock Exchange) 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.