Eco (Atlantic) Oil & Gas (CVE:EOG) received approval from the TSX Venture Exchange on Thursday for its planned buy back of 6.49mln of the company's common shares - 10% of the shares held by public stockholders.
At present, Eco has a total of 88,054,399 common shares issued and outstanding, out of which a total of 23,135,693 common shares are non-public shares held by directors and senior officers, or held in escrow.
The issuer bid, or buyback, started on Thursday and will end on March 9, 2017, or such earlier time as the issuer bid is completed or terminated at the option of the company.
The company previously purchased 6,308,391 common shares through a normal course issuer bid which ended on March 1.
Eco said it believes that its common shares have been trading in a price range which does not adequately reflect their value in relation to the company's business and its future business prospects. As a result, depending upon future price movements and other factors, the company believes that its outstanding common shares may represent an attractive investment for the company and a desirable use of a portion of its available funds.
The shares traded down 5% at C$0.19 on Thursday.