Draig to buy back common shares
Draig Energy Ltd DRA
Shares issued 11,201,152 2000-05-10 close $2.15
Wednesday May 10 2000
Mr. Les Treitz reports
Draig Energy has filed a notice of intention to make a normal course issuer bid with The Toronto Stock Exchange. The company will be authorized to buy back, for cancellation, a maximum of 584,039 of its common shares representing 5-per-cent of its issued and outstanding common shares. The issuer bid will commence on May 12, 2000, and end on May 11, 2001.
As at May 8, 2000, there were 11,681,870 common shares of Draig Energy issued and outstanding. The company had previously conducted a normal course issuer bid through the TSE commencing on April 26, 1999, and ended on April 25, 2000, during which the company acquired 211,900 shares under the bid at an average price of $2.16 per share.
Draig believes the buy back of its common shares represents an appropriate use of funds as the company is of the opinion that the market price of its common shares represents a significant discount to the fair value of such shares. Draig has calculated its net asset value per fully diluted share to be $4.11 using a 15 per cent discount as at December 31, 1999. |
