SOL Global (CSE: SOL) announced this morning that it will be conducting a share buyback for up to 5% of its currently outstanding shares. The firm has identified that it believes its equity is undervalued given current assets and that performing a buyback is in the best interest of shareholders.
The buyback, formally referred to as a normal course issuer bid, is set to commence immediately. The firm intends to purchase up to 2,731,462 common shares of its equity, which equates to 5% of its outstanding share count. The process of buying its equity back will begin immediately, and is expected to occur through to November 1, 2020.
All shares will be purchased via the open market, and will be cancelled upon purchase by the company.
This is the second time that SOL Global has conducted a normal course issuer bid. Last October, it conducted a similar program which was completed way ahead of schedule – the process lasted just three months, with the firm announcing the completion of the bid on January 8, 2019. 2,451,861 common shares were purchased and cancelled at the time, at an average price of $2.00 per share.
SOL Global last traded at a price of $0.56 on the Canadian Securities Exchange, after setting a new 52 week low at $0.42 yesterday.
Information for this briefing was found via Sedar and SOL Global. 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. The author holds no licenses.
