Shares of Canacol Energy Ltd (OTCMKTS:CNNEF) closed with mild gains in the previous session. Here is why
Market Reaction
On Tuesday, CNNEF stock jumped 3.58% to $2.46 with more than 8.8k shares, compared to its average volume of 27K shares. The stock has moved within a range of $2.3500 – 2.4800 after opening trade at $2.35.
Canacol Energy Ltd. Announces Renewal of Normal Course Issuer Bid
Natural gas exploration and production company with operations focused in Colombia, Canacol Energy Ltd (OTCMKTS:CNNEF) announced on December 21, 2021, announced that Toronto Stock Exchange has agreed on Corporation’s notice for conducting a normal course issuer bid. This has been approved by TSX and the Corporation is authorized for purchasing about 10,513,661 common shares, representing about 10% of the public float of Canacol.
There were also 176,656,422 common shares outstanding by December 21, 2021. The highest number of common shares that the company can purchase is 43,316 common shares, 25% of the firm’s average daily trading volume on the TSX.
The firm may make a weekly block repurchase exceeding the daily limit. Canacol has appointed Eight Capital as the broker for conducting NCIB transactions. The firm has been authorized for making purchases from December 24, 2021, to December 23, 2022.
Canacol’s earlier NCIB will expire on December 23, 2022. The corporation has got the approval of TSX for purchasing about 11,341,964 common shares, representing 10% of the Corporation’s public float.
The company has forayed into an automatic share purchase plan with a designated broker. It will allow the purchase of shares under NCIB at times when the firm may not be permitted to buy shares because of regulatory restrictions as well as self-imposed blackout periods.
Traders Review
CNNEF stock is trading below the 20-Day and 50-Day Moving averages of $2.48 and $2.76 respectively. Moreover, the stock is trading below the 200-Day moving average of $2.73. The stock is down 4% over the past month.
