CALGARY, AB, June 30, 2026 /CNW/ - AKITA Drilling Ltd. (TSX: AKT.A) (TSX: AKT.B)
AKITA Drilling Ltd. ("AKITA" or the "Company") is pleased to announce the closing of its previously announced acquisition (the "Acquisition") of Fox Drilling Limited Partnership and its general partner, Fox Drilling Inc. (together, "Fox"), from Paramount Resources Ltd. ("Paramount"), together with the completion of the elimination of the Company's dual class share structure (the "Share Reorganization", and together with the Acquisition, the "Transaction").
Pursuant to the Acquisition, AKITA has acquired all of Paramount's interests in Fox, a privately-held drilling contractor that operates a fleet of six triple drilling rigs in the Western Canadian Sedimentary Basin, five of which are high-specification AC walking rigs, in consideration for the issuance of 19,264,270 Common Shares (as defined below) to Paramount. Paramount has announced that, in accordance with the purchase agreement governing the Acquisition, it will distribute such Common Shares pro rata on July 16, 2026 to its shareholders of record as of July 9, 2026.
Concurrent with the closing of the Acquisition, AKITA entered into a rig utilization agreement with Paramount for a term of three years, pursuant to which Paramount has committed to utilize rigs of AKITA for an aggregate total of 2,700 rig days during the term.
Immediately prior to the closing of the Acquisition, AKITA completed the Share Reorganization, pursuant to which, among other things, each outstanding Class A Non-Voting Share ("Class A Share") was changed into one Class B Common Share, and the Company's Class B Common Shares were redesignated as "Common Shares" ("Common Shares"). Accordingly, AKITA now has one class of outstanding equity securities, being the Common Shares, which carry one vote per share. Starting at the market open on July 6, 2026, the Common Shares will trade on the TSX under the symbol "AKT" and the symbols "AKT.A" and "AKT.B" will be delisted.
Shareholder Approvals
The special resolution to approve the Share Reorganization was approved by an overwhelming majority of holders of Class A Shares and holders of Class B Common Shares, in each case, voting separately as a class, at a special meeting of shareholders held on June 29, 2026 (the "Meeting").
Normal Course Issuer Bid
As a consequence of the Share Reorganization, the terms of AKITA's normal course issuer bid ("NCIB") have been amended to permit AKITA to repurchase Common Shares under the NCIB in lieu of the Class A Shares previously authorized for repurchase. As of June 29, 2026, AKITA had repurchased for cancellation 1,522,585 Class A Shares under its NCIB for aggregate consideration of $3,631,697 at a weighted average price of $2.39 per Class A Share. Accordingly, under its amended NCIB, AKITA is authorized to repurchase for cancellation up to 381,435 Common Shares until August 5, 2026. The terms of AKITA's NCIB are otherwise unchanged.
Board Reconstitution & Management
In connection with the closing of the Transaction, Mr. James H.T. Riddell and Mr. Jackson Riddell have been appointed to the Board of Directors of AKITA. Mr. Harish K. Mohan, Mr. D. Neil Yeates and Mr. Henry G. Wilmot have retired from the Board of Directors. AKITA thanks Messrs. Mohan, Yeates and Wilmot for their contributions to AKITA over the years. Ms. Linda Southern-Heathcott continues to serve as Chair of the Board.
AKITA will continue to be led by Colin Dease, President and Chief Executive Officer, and Darcy Reynolds, Vice President, Finance and Chief Financial Officer.
About AKITA Drilling
AKITA Drilling Ltd. is a leading Canadian drilling services company with operations across key basins in Western Canada and select U.S. markets. The Company is focused on delivering safe, high-performance drilling services and long-term value to customers and shareholders.
Forward-Looking Information
Certain information set forth in this press release constitutes "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements other than statements of historical fact are forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "plan", "estimate", "expect", "may", "will", "intend", "should", "could", "believe", "predict", "potential", "continue", "is expected to" and similar expressions. Forward-looking information in this press release includes, but is not limited to, statements relating to: the performance of the rig utilization agreement; the distribution by Paramount of Common Shares to its shareholders; the timing of the listing and delisting of the Common Shares, Class A Shares and Class B Common Shares, respectively; and the timing of amendments to AKITA's NCIB.
Forward-looking information is based on certain assumptions and analysis made by AKITA in light of its experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, including: the performance of the rig utilization agreement in accordance with its terms; and the satisfaction of all requirements of the TSX in connection with the Transaction and the timing thereof.
Forward-looking information is subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking information. Such factors include, but are not limited to: risks related to the satisfaction of all requirements of the TSX in connection with the Transaction; risks related to the drilling services industry, including changes in demand for drilling services, commodity price fluctuations and competition; and the risks, uncertainties and other factors detailed from time to time in AKITA's public disclosure documents, which are available at www.sedarplus.ca, including AKITA's management's discussion and analysis for the year ended December 31, 2025 and for the three months ended March 31, 2026.
Although AKITA believes that the assumptions underlying the forward-looking information contained herein are reasonable, undue reliance should not be placed on forward-looking information, which is based on information available to AKITA on the date hereof. Except as required by applicable law, AKITA disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
SOURCE AKITA Drilling Ltd.
For further information, please contact: Darcy Reynolds, CPA, CA, Vice President, Finance and Chief Financial Officer, (403) 292-7537
