Soma Announces Normal Course Issuer Bid
Updated: Feb 22, 2021
February 22, 2021, Vancouver, British Columbia /CNW/ - Soma Gold Corp. (TSXV: SOMA) (WKN: A2P4DU) (OTCQB: SMAGF) (formerly Para Resources Inc.) (the “Company” or “Soma”) announces that the TSX Venture Exchange (the “TSXV”) has accepted Soma’s notice (the “Notice”) to make a normal course issuer bid (the “Bid”) to purchase for cancellation up to 2,201,680 common shares in the capital of the Company (“Common Shares”) in total, being 10% of the public float or 5.5% of the issued and outstanding Common Shares as at the date of the Notice, to be transacted through the facilities of the TSXV. The actual number of Common Shares that may be purchased pursuant to the Bid will be determined by management of the Company (the “Management”). The Bid will commence on February 25, 2021 and will terminate on February 24, 2022, or such earlier time as the Bid is completed or terminated at the option of the Company.
The Bid will be conducted in accordance with applicable securities laws and the policies of the TSXV, pursuant to which the Company will include a summary of the Bid in the management information circular to be mailed to shareholders of the Company in respect of its next meeting of shareholders, which mailing is expected to take place in the third quarter of 2021.
Purchases pursuant to the Bid will be made by Haywood Securities Inc. on behalf of the Company. Decisions regarding the timing of purchases under the Bid will be determined by Management based on market conditions, share price and other factors. Management may elect to not purchase any Common Shares under the Bid or may elect to suspend or discontinue the Bid at any time. Any purchases pursuant to the Bid will be financed from the working capital of Soma.
The Board of Directors of the Company believes that the underlying value of the Company may not be accurately reflected at times in the market price of the Common Shares. Accordingly, the purpose of the Bid is to enhance long-term shareholder value through the purchase and cancellation of Common Shares at a discount to the underlying value of the Company. Furthermore, the purchases by Soma will help mitigate the dilutive effects of any future potential issuances of additional Common Shares as consideration for capital raises, joint ventures or asset acquisitions.
A copy of the Notice filed with the TSXV in connection with the Bid can be obtained from the Company upon request without charge.
Geoff Hampson, Soma’s Executive Chairman, states, “The current operating results of the Company are reflective of the management team’s accomplishments since early 2020. These include the sale of the technically challenging Gold Road Mine, the settlement of the associated debt, several new financings and the acquisition of Operadora Mineras, S.A.S. in Colombia. The Company is now profitably producing gold, is in a positive cash position and has demonstrated through the drilling program that the mineralized zone is open on-strike and at depth. Despite these accomplishments, the Company’s share price has not reflected the underlying value that has been created, especially when compared to its comps. The Board of Directors believe that it is in the best interests for the Company to purchase shares in the market and to cancel them at these levels.”