Khiron Life Sciences To Conduct Share Buybacks

Khiron Life Sciences (TSXV: KHRN) announced this morning that it will be conducting a normal course issuer bid, also known as share buyback, for a total of 5% of its currently outstanding shares. The Latin American based cannabis operator identified that it is doing so as a result of the current equity price of the company not accurately reflecting its value.

As a result of the share buyback program, the firm expects to purchase and subsequently cancel up to 5,830,615 common shares on the open market. The firm believes that conducting such buybacks while in a growth stage represents an appropriate use of the firms financial resources, and that it will improve shareholder value.

As of September 30, 2019, Khiron had cash holdings of approximately $47.8 million, which includes $30.4 million currently held in short term investments consisting of guaranteed investment certificates. The firms cash position is a result of two bought deals conducted last year in February and May, for $28.8 million and $28.7 million respectively.

A total of 116,612,318 common shares were outstanding for the issuer as of this mornings news release.

Khiron Life Sciences last traded at $0.70 on the TSX Venture.


Information for this analysis was found via Sedar and Khiron Life Sciences. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

Share
Tweet
Share