Saturn Oil & Gas Inc. announced the buyback of 1,608,182 common shares, for a total amount of CAD3.46mn ($2.54mn), as part of its public issuer bid, completed at the close of the operation. This transaction represents 0.8% of the company’s share capital, according to the final count provided by Odyssey Trust Company, acting as depositary agent.
Share buyback and impact on capital structure
All shares tendered under the offer were accepted without adjustment, as no proration mechanism was required. Following this operation, Saturn Oil & Gas Inc. now has 193,318,469 shares outstanding. Payment for the shares will be made in accordance with the legal and contractual provisions set out in the offer.
The board of directors had suspended its share buyback programme on the market, known as the NCIB (Normal Course Issuer Bid), during the validity period of the public offer. Saturn Oil & Gas Inc. plans to resume its market buybacks until the programme expires on August 26, 2025, or until the regulatory buyback limit is reached.
Tax consequences for shareholders and buyback outlook
According to Saturn Oil & Gas Inc. estimates, the paid-up capital per share amounts to CAD2.18 ($1.60) at the expiry date of the offer, in accordance with the Canadian Income Tax Act. The company indicates that shareholders who disposed of their shares as part of the operation should not be deemed to have received a taxable dividend under Canadian tax rules. However, they are advised to consult their own tax advisors to assess their specific situation.
Saturn Oil & Gas Inc. states its intention to actively continue the share buyback via the NCIB, within the limit of the daily authorised volumes. No commitment has been made regarding the total number of shares to be acquired over the remaining duration of the programme. The company operates mainly in the Canadian provinces of Saskatchewan and Alberta, where it develops its light oil assets.
Listed on the Toronto Stock Exchange, the company continues to prioritise strategies that optimise shareholder value through the management of its free float and the monitoring of its buyback programme performance. Saturn Oil & Gas Inc. has not disclosed further information on the evolution of its buyback policy following this operation.
