AgriFORCE Announces Share Repurchase Program
AgriFORCE Growing Systems (NASDAQ: AGRI; AGRIW), an IP-focused AgTech company, has announced a share repurchase program authorized by its Board of Directors.
The program allows the company to buy back up to $1 million worth of common shares over six months, subject to contractual requirements. The Board will review and may extend or increase the program as needed.
Repurchases will be conducted through privately negotiated or open-market transactions, adhering to securities laws and regulations, including Rule 10b-18 and Rule 10b5-1 of the Securities Exchange Act of 1934. Timing and amount of repurchases will be at the management's discretion, based on market conditions and other factors.
The company is not obligated to repurchase any shares and may suspend or terminate the program at any time.
- Share repurchase program authorized up to $1 million.
- Potential for enhanced shareholder value through buybacks.
- Flexibility to extend or increase the buyback program.
- Repurchases to be conducted in compliance with securities laws, ensuring regulatory adherence.
- No obligation to repurchase shares, leading to uncertainty.
- Program can be suspended or discontinued at any time.
- Potential diversion of capital from other growth opportunities.
Insights
The announcement of a share repurchase program by AgriFORCE Growing Systems Ltd. highlights the company's strategic approach to capital allocation. A share repurchase program often indicates that a company believes its stock is undervalued and is a move to return capital to shareholders.
Key considerations:
- The $1 million repurchase amount is relatively modest compared to larger companies, but it is significant for a small-cap company like AgriFORCE, signaling confidence in its future prospects.
- The timing and amount of repurchases will depend on market conditions and management discretion, making it flexible but also unpredictable.
From a financial perspective, this program can provide a short-term boost to the stock price by reducing the number of shares outstanding, which can improve earnings per share (EPS). However, investors should be aware that share repurchases do not necessarily indicate long-term growth prospects. It’s important to consider the company’s overall financial health and growth strategy.
Additionally, this move can enhance shareholder value if the company’s internal estimates of its stock’s value are accurate. However, if the market conditions are not favorable or the company misjudges its valuation, the intended positive impact may not materialize. Understanding the broader market context and keeping an eye on AgriFORCE's quarterly performance reports will be important for evaluating the real impact of this buyback program.
VANCOUVER, British Columbia, June 17, 2024 (GLOBE NEWSWIRE) -- AgriFORCE Growing Systems Ltd. (“the Company”) (NASDAQ: AGRI; AGRIW), an intellectual property (IP) focused AgTech company, announces a share repurchase program.
The Company’s Board of Directors (the “Board”) today authorized a share repurchase program under which the Company may repurchase up to
Under the Repurchase Program, effective immediately, the Company may repurchase common shares in privately negotiated or open-market transactions in accordance with applicable securities laws and regulations, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended, and pursuant to a trading plan adopted in accordance with Rule 10b5‐1 of the Securities Exchange Act of 1934.
The specific timing and amount of repurchases, if any, will be at the discretion of the Company’s management team, and will depend upon a variety of factors, including market conditions, regulatory requirements, capital allocation alternatives, and other corporate considerations. The Company is not obligated under the program to purchase any common shares. The repurchase program may be suspended or discontinued at any time.
ABOUT AGRIFORCE
AgriFORCE Growing Systems Ltd. (NASDAQ: AGRI; AGRIW) is an AgTech company focused on building an integrated AgTech platform that combines the best technology, intellectual property, and knowledge to solve an urgent problem – providing the best solutions to help drive sustainable crops and nutritious food for people around the world. The AgriFORCE vision is to be a global leader in delivering plant-based foods and products through an advanced and sustainable AgTech platform that makes positive change in the world—from seed to table. Additional information about AgriFORCE is available at: www.agriforcegs.com.
Follow AgriFORCE on Twitter: @agriforcegs
Follow AgriFORCE on Facebook: AgriFORCE Growing Systems Ltd.
Connect with AgriFORCE on LinkedIn: AgriFORCE Growing Systems Ltd.
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission and elsewhere. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release. This announcement is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy securities of the issuer. Any offer to sell or solicitation of an offer to buy securities of the issuer may only be made pursuant to a valid prospectus pursuant to an effective registration statement or pursuant to a valid exemption from registration under the Securities Act of 1933, as amended and the rules and regulations promulgated thereunder.
Investor Relations:
Richard Wong, CFO, rwong@agriforcegs.com
CORE IR
investorrelations@agriforcegs.com
FAQ
What is the value of AgriFORCE's share repurchase program?
How long will AgriFORCE's share repurchase program last?
What factors will influence AgriFORCE's share repurchases?
Can AgriFORCE suspend or discontinue the share repurchase program?
Under what rules will AgriFORCE conduct its share repurchases?
