Wishpond Technologies Ltd. (TSXV: WISH) this morning announced that it will be conducting a normal course issuer bid (NCIB). The share buyback program has reportedly already been approved by the TSX Venture.
The company has indicated that it can purchase up to 2,590,389 shares under the program, with this number representing 5% of the total shares outstanding as of June 3, 2021. The program is valid until June 10, 2022.
The buyback program was viewed as being one of the best options for company funds, despite the firm raising $8.0 million just a few months ago back in February, at a price of $1.75 per share. It’s also worth noting that the company does not generate positive cash flow, with adjusted EBITDA even being negative in the most recent quarter to the tune of $1.0 million.
As of March 31, the company had cash and cash equivalents of roughly $11.2 million.
Wishpond Technologies Ltd. last traded on the TSX Venture at $1.48.
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