Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) has announced the launch of a share buyback programme worth up to £2.7 million, signalling confidence in the company’s outlook and its 2025 growth strategy.
The repurchase will be funded from the company’s existing cash reserves and executed by the stockbroker Canaccord Genuity. All acquired shares will be cancelled, reducing the company’s outstanding share count.
Marshall Abbott, CEO of Arrow Exploration Corp., commented:
“Arrow is pleased to put in place the share buyback program for 2025. We believe it is the right thing to do for Arrow and our shareholders, and it reflects the confidence we have in the 2025 program and the future of Arrow.”
“The Company will begin buying back and cancelling shares in the coming months. The market will be updated at each share purchase to make the program as transparent as possible.”
The company said share purchases will begin in the coming months, with regular updates provided to ensure full transparency throughout the programme.
Further details of the Share Buyback Programme
The purpose of the Share Buyback Programme is to return capital to those shareholders wishing to participate in the Share Buyback.
· The Share Buyback will be financed from existing cash resources.
· The Share Buyback shall be done in compliance with the Business Corporations Act (Alberta).
· The aggregate number of Shares acquired by the Company pursuant to the Share buyback shall not exceed the volume limitations imposed by the Exchange.
· The maximum price (exclusive of expenses) which may be paid for each Share is an amount equal to the price of the last independent trade of any Share.
· It is intended that the Share Buyback Programme will, insofar as is possible, be conducted in accordance with the safe harbour parameters of MAR (as defined below); however, given the limited liquidity in the Shares, the Share Buyback may on any given trading day represent a significant proportion of the daily trading volume in the Shares on the London Stock Exchange and could exceed 25 per cent of the average daily trading volume. Accordingly, the Group may not benefit from the exemption contained in Article 5(1) in the UK version of the Market Abuse Regulations (Regulation (EU) No 596/2014) as incorporated into UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”).
· The Share Buyback is capable of being commenced from the date of this announcement and is anticipated to continue until the number of Shares equal to the Maximum Monetary Amount have been purchased under the Share Buyback or the process is terminated or paused.
· The purchased Shares will be cancelled by the Company.
· Share buybacks will take place in open market transactions and may be made from time to time depending on market conditions, share price and trading volume. There is no certainty that any buybacks will be completed. The Share Buyback may be paused at any time if deemed appropriate by the Company with respect to market conditions.
· Purchases may continue under the Share Buyback Programme during any closed period to which the Company is subject provided an irrevocable, non-discretionary instruction to Canaccord Genuity has been made prior to entering a closed period. The Company confirms it is not in a close period and currently has no other unpublished inside information.
· There is no guarantee that the Share Buyback Programme will be implemented in full or that any purchases will be made. The Company reserves the right to bring a halt to the Share Buyback Programme under circumstances that it deems to be appropriate and in accordance with relevant law and regulation.
· As at 31 December 2024, the Company’s total issued share capital consisted of 285,864,348 Shares, with one voting right per share. As at this date, the Company does not hold any Shares in treasury. Therefore, the total number of voting rights in the Group is 285,864,348.
· The Company will make further regulatory announcements in respect of repurchases of Shares as required by applicable laws and regulations, including the TSXV, MAR and the AIM Rules.
· Any market purchase of Shares pursuant to the Share Buyback will be announced no later than 7.30am on the business day following the day on which the purchase occurred.
The Board has determined Share Buyback Programme is in the best interests of the Company and its shareholders and is expected to commence over the coming days.
