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(Sharecast News) - Arrow Exploration announced the launch of a share buyback programme of up to £2.7m on Friday, with approval received from the TSX Venture Exchange to repurchase up to 14.3 million shares, representing 5% of its public float.
The AIM- and TSXV-traded oil and gas company said the buyback, which would be conducted on the London Stock Exchange and other UK-recognised exchanges, aimed to return capital to shareholders, adding that it reflected management's view that the current share price undervalued the company.
Canaccord Genuity would manage the buyback on Arrow's behalf, executing purchases within pre-set parameters and in accordance with relevant UK and Canadian regulations.
The company confirmed it could issue time-limited, non-discretionary instructions during closed periods and that all repurchased shares would be cancelled.
It said the programme would be funded from existing cash reserves and may be paused, adjusted or terminated depending on market conditions and trading activity.
Arrow also noted that due to limited liquidity, daily purchases may exceed 25% of average trading volume and thus may fall outside the safe harbour provisions of UK market abuse rules.
The programme was expected to begin in the coming days.
Arrow's issued share capital stands at 285.9 million shares, all with voting rights.
"Arrow is pleased to put in place the share buyback program for 2025," said chief executive officer Marshall Abbott.
"We believe it is the right thing to do for Arrow and our shareholders, and it reflects the confidence we have in the 2025 program and the future of Arrow."
Abbott said the company would begin buying back and cancelling shares in the coming months.
"The market will be updated at each share purchase to make the program as transparent as possible."
At 1512 BST, shares in Arrow Exploration Corporation were up 10.82% at 21.06p.
Reporting by Josh White for Sharecast.com.
