The Alberta Securities Commission, acting as the principal regulator, granted Enerplus Corporation (the Filer) an exemption from certain issuer bid requirements under National Instrument 62-104 Take-Over Bids and Issuer Bids (NI 62-104). This exemption allows the Filer to purchase its own common shares through the New York Stock Exchange (NYSE) and other U.S. markets beyond the 5% limit typically imposed, aligning with the maximum aggregate limit allowed by the Toronto Stock Exchange (TSX) rules for a normal course issuer bid.
The Filer is a corporation with shares listed on both the TSX and NYSE. It had previously announced a normal course issuer bid to repurchase up to 10% of its public float through the TSX, NYSE, and other trading systems, in compliance with applicable securities laws.
The exemption was granted on several conditions, including compliance with U.S. securities laws and TSX rules, issuance of a press release detailing the exemption terms, and adherence to the maximum aggregate purchase limit of 10% of the public float over a 12-month period. The exemption is also subject to the condition that the total number of shares acquired through the U.S. markets and other exemptions does not exceed 5% of the outstanding shares within any 12-month period.
This decision allows the Filer to better align its share repurchase activities with its trading volumes on the U.S. markets, which have been higher than those on the TSX. The exemption is intended to facilitate the Filer’s ability to repurchase shares without adversely affecting the company or its shareholders and without materially affecting control of the company.