TORONTO - Africa Oil (OTC:AOIFF) Corp. has received the green light from the Toronto Stock Exchange (TSX) to initiate a normal course issuer bid, signaling a strategic move to enhance shareholder value. The company announced its intention to repurchase up to 38,654,702 of its common shares, which equates to approximately 10% of its public float. The share repurchase is set to commence on Wednesday and will extend until December 5, 2024, unless the maximum number of shares is purchased prior to this end date or the program is terminated early.
The repurchase plan will unfold on both the TSX and Nasdaq Stockholm, as well as other Canadian trading platforms. Africa Oil Corp. aims to conduct these transactions at prevailing market prices in accordance with applicable securities laws. As part of the company's capital allocation strategy, all shares acquired through this program will be cancelled. Prior to initiating this repurchase plan, Africa Oil Corp. did not hold any treasury stock.
The cancellation of repurchased shares is expected to directly benefit investors by reducing the total number of outstanding shares, thereby potentially increasing the earnings per share and enhancing the overall value for remaining shareholders.
To ensure orderly trading, there are specific limits in place for the daily volume of shares that can be bought back on each exchange. On Nasdaq Stockholm, the company is restricted to purchasing no more than a quarter of the average daily trading volume of its shares. Similarly, on the TSX, Africa Oil Corp. cannot buy back more than 96,006 shares within a single trading day.
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