EDMONTON, ALBERTA--(Marketwire - Dec. 13, 2012) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Bri-Chem Corp. ("Bri-Chem" or "Company") (TSX:BRY) a leading North American wholesale distributor and manufacturer of oil and gas drilling fluids and steel pipe is pleased to announce that Bri-Chem has received acceptance from the Toronto Stock Exchange ("TSX") in respect of its intention to make a Normal Course Issuer Bid (the "Bid").
The Bid will consist of the acquisition by Bri-Chem of up to 1,103,327 common shares of its capital stock, representing 10% of the public float of 11,033,274 common shares on the proposed date of commencement of the Bid. There are currently 17,366,461 common shares of Bri-Chem issued and outstanding. The Bid is to commence on December 17, 2012, and will terminate on December 16, 2013 or earlier if the number of shares sought in the Bid have been obtained. Bri-Chem reserves the right to terminate the Bid earlier if it feels it is appropriate to do so. All shares acquired under the Bid will be returned to treasury for cancellation. Except for block purchases permitted under the rules and policies of the TSX, the number of Common Shares to be purchased per day will not exceed 3,176, or approximately 25% of the average daily trading volume for the six full calendar months prior to November 30, 2012.
Common shares will be purchased at the market price at the time of purchase and will be purchased on behalf of Bri-Chem by Macquarie Private Wealth Inc., Bri-Chem's broker in connection with the Bid, in accordance with the rules and policies of the TSX. Purchases will be made through the facilities the TSX at prevailing market prices.
The Board of Directors of the Company has authorized the Bid because it believes that it is an efficient use of the Company's financial resources to purchase Shares when the market price of the Shares does not fully reflect their underlying value. Any common shares purchased by Bri-Chem will be cancelled.
Since our formation in 1985, Bri-Chem has established two primary segments of business through a combination of internal growth and acquisitions: Bri-Chem's Drilling Fluid Division is North America's largest independent wholesale supplier of drilling fluids for the oil and gas industry. We provide over 100 drilling fluid products, cementing, acidizing and stimulation additives from 25 strategically located warehouses throughout Canada and the United States; Bri-Chem's Steel Pipe Division is the first company to introduce and construct a Thermal Pipe Expansion (TPE) facility in North America for manufacturing, testing and supply of large diameter seamless steel pipe for the energy industry. Additional information about Bri-Chem is available at www.sedar.com or at Bri-Chem's website at www.brichem.com.
Certain information set forth in this news release contains forward-looking statements or information ("forward-looking statements"), including statements which may contain words such as "could", "should", "expect", "anticipate", "believe", "will", and similar expressions including statements regarding the anticipated repurchase of common shares, and statements relating to matters that are not historical facts are forward looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, environmental risks, demand for oilfield services for drilling and completion of oil and natural gas wells; volatility in market prices for steel, oil, natural gas, and natural gas liquids and the effect of this volatility on the demand for oilfield services generally, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and the ability to access sufficient capital from internal and external sources. Although the Company believes that the expectations in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking information. As such, readers are cautioned not to place undue reliance on the forward looking information, as no assurance can be provided as to future results, levels of activity or achievements. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our Annual Information Form and other documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, the Company does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
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