China Online Education Group Announces US$20.0 million Share Repurchase Program

Rhea-AI Summary

China Online Education Group (NYSE: COE) announced a share repurchase program, allowing the company to buy back up to US$20 million of its Class A ordinary shares through various means from September 8, 2020 to September 7, 2021. The repurchases will depend on market conditions and will be funded from existing cash reserves. The company's board will periodically review the program, potentially adjusting its terms and size.

Positive

• Authorization of a US$20 million share repurchase program potentially enhances shareholder value.
• Buyback funded from existing cash reserves indicates strong liquidity.

Negative

• None.

BEIJING, Sept. 8, 2020 /PRNewswire/ -- China Online Education Group ("51Talk" or the "Company") (NYSE: COE), a leading online education platform in China, with core expertise in English education, today announced that its board of directors has authorized a share repurchase program under which the Company may repurchase up to US$20.0 million of its Class A ordinary shares in the form of American depository shares between September 8, 2020 and September 7, 2021.

The Company's proposed repurchases may be made from time to time in the open market and through privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The Company's board of directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size. The Company plans to fund repurchases from its existing cash balance.

Safe Harbor Statement

This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "aims", "future", "intends", "plans", "believes", "estimates", "likely to" and similar statements. Among other things, 51Talk's business outlook and quotations from management in this announcement, as well as 51Talk's strategic and operational plans, contain forward-looking statements. 51Talk may also make written or oral forward-looking statements in its periodic reports to the Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about 51Talk's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: 51Talk's goals and strategies; 51Talk's expectations regarding demand for and market acceptance of its brand and platform; 51Talk's ability to retain and increase its student enrollment; 51Talk's ability to offer new courses; 51Talk's ability to engage, train and retain new teachers; 51Talk's future business development, results of operations and financial condition; 51Talk's ability to maintain and improve infrastructure necessary to operate its education platform; competition in the online education industry in China; the expected growth of, and trends in, the markets for 51Talk's course offerings in China; relevant government policies and regulations relating to 51Talk's corporate structure, business and industry; general economic and business condition in China, the Philippines and elsewhere and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in 51Talk's filings with the SEC. All information provided in this press release is as of the date of this press release, and 51Talk does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

About China Online Education Group

China Online Education Group (NYSE: COE) is a leading online education platform in China, with core expertise in English education. The Company's mission is to make quality education accessible and affordable. The Company's online and mobile education platforms enable students across China to take live interactive English lessons with overseas foreign teachers, on demand. The Company connects its students with a large pool of highly qualified foreign teachers that it assembled using a shared economy approach, and employs student and teacher feedback and data analytics to deliver a personalized learning experience to its students.

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SOURCE China Online Education Group

FAQ

What is the purpose of China Online Education Group's share repurchase program?

The share repurchase program aims to enhance shareholder value by reducing the number of outstanding shares.

How much is China Online Education Group authorized to repurchase in its buyback program?

China Online Education Group is authorized to repurchase up to US$20 million of its shares.

What is the duration of the share repurchase program for COE?

The share repurchase program is set to last from September 8, 2020 to September 7, 2021.

How will China Online Education Group fund its share repurchase program?

The company plans to fund the share repurchase program from its existing cash balance.

How will the share repurchase program impact COE's stock price?

The program may positively impact COE's stock price by reducing supply and potentially increasing demand.