HOUSTON, July 11, 2014 /PRNewswire/ -- Tesco Corporation (the "Company") (NASDAQ: TESO) announced on May 6, 2014 that its Board of Directors had authorized the repurchase of as much as USD $100 million of the Company's common shares over a two year period. The repurchase of the common shares shall be conducted as a normal course issuer bid ("NCIB"). In the first tranche of the program, the Board has authorized the purchase for cancellation of up to 501,317 issued and outstanding common shares ("Shares"), representing approximately 1.25% of the 40,105,423 Shares in the public float as of April 30, 2014, through the facilities of the Nasdaq Stock Market ("NASDAQ"). The Company's Board of Directors shall authorize additional tranches of repurchases on a quarterly basis subject to the NCIB limitation that the Company may repurchase no more than 5% of its outstanding Shares within any 12-month period.
During any of the Company's blackout periods, purchases under the NCIB may continue under an automatic securities purchase plan between the Company and its broker which was put in place during the NCIB. The first tranche of the program's repurchases is scheduled to occur between July 5, 2014 and continue until August 1, 2014.
The Company and its Board of Directors believe that this NCIB is in the best interests of its shareholders and the repurchases made under this NCIB will be made, in part, to offset the dilutive effect of Shares expected to be issued upon the exercise of stock options under the Company's stock option plan.
The actual number of Shares purchased, the timing of purchases and the price at which the Shares are bought will depend on future market conditions and on potential alternative uses for the Company's cash resources. Any purchases will be subject to trading restrictions and will be made by the Company at the prevailing market price of the Shares at the time of purchase.