Orca Energy Group Inc. Announces Intention to Commence Substantial Issuer Bid

TORTOLA, British Virgin Islands, Dec. 03, 2020 (GLOBE NEWSWIRE) -- Orca Energy Group Inc. ("Orca" or the "Company" including its subsidiaries and affiliates) (TSX-V: ORC.A, ORC.B) announces today its intention to commence a substantial issuer bid of up to C$40 million (the "Offer") pursuant to which the Company will offer to purchase for cancellation a portion of its Class B Subordinate Voting Shares (the "Class B Shares") at a price range of between C$6.50 and C$7.50 per share. The Company intends to fund the Offer from current cash resources.

Under the Offer, which remains subject to the receipt of a satisfactory liquidity opinion from the Company's financial adviser and approval of the Board of Directors, shareholders will have the opportunity to tender their shares through a modified Dutch auction tender. The Offer will not be conditional upon any minimum number of shares being tendered and will be subject to conditions customary for transactions of this nature.

Assuming the Offer is fully subscribed and completed, the Company will have distributed approximately C$132 million in dividends and share buybacks since February 2018.

This news release is for informational purposes only and does not constitute an offer to buy or the solicitation of an offer to sell the Company's shares. The Offer referred to in this news release has not yet commenced. The solicitation and the offer to buy the shares will only be made pursuant to a separate issuer bid circular which will contain full details of the Offer, be filed with the Canadian securities regulatory authorities and mailed to the Company's registered shareholders.

Jay Lyons, Interim Chief Executive Officer, commented:

"Following our strong cash generation and operational performance to date in 2020 relative to our peers, I am pleased to announce Orca's intention to launch a substantial issuer bid of C$40 million. The substantial issuer bid we completed earlier in 2020 was well-received by the market and we believe it is an effective way for the Company to reward its investors, by returning value to them. This also comes on the back of the quarterly cash dividend we declared in November, all of which demonstrates our commitment to returning excess capital to shareholders as appropriate."