Dada Announces up to US$150 Million Share Repurchase Program

Rhea-AI Summary

Dada Nexus Limited (NASDAQ: DADA) announced a share repurchase program totaling up to US$150 million over the next 12 months. The buyback will be funded through existing cash reserves and aims to enhance shareholder value. The program will be executed on the open market or through negotiated transactions, as market conditions permit. Dada operates JDDJ and Dada Now, two interconnected platforms that drive efficient on-demand retail and delivery services in China.

Positive

• Authorization of a US$150 million share repurchase program, which may enhance shareholder value.
• Funding for the buyback is secured from existing cash reserves.

Negative

• None.

SHANGHAI, China, June 07, 2021 (GLOBE NEWSWIRE) -- Dada Nexus Limited (“Dada” or the “Company”) (NASDAQ: DADA), China’s leading local on-demand delivery and retail platform, today announced that the board of directors of the Company has authorized a share repurchase program whereby Dada is authorized to repurchase its own ordinary shares in the form of American depository shares with an aggregate value of up to US$150 million during the 12-month period. The Company expects to fund the repurchase out of its existing cash balance. The proposed share repurchase may be effected on the open market at prevailing market prices and/or in negotiated transactions off the market from time to time as market conditions warrant in accordance with applicable requirements of Rule 10b5-1 and/or Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended.

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, quotations in this announcement, contain forward-looking statements. Dada may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “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 Dada’s beliefs, plans 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: Dada’s strategies; Dada’s future business development, financial condition and results of operations; Dada’s ability to maintain its relationship with major strategic investors; its ability to provide efficient on-demand delivery services and offer quality on-demand retail experience; its ability to maintain and enhance the recognition and reputation of its brands; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Dada’s filings with the SEC. All information provided in this press release is as of the date of this press release, and Dada does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

About Dada

Dada is a leading platform of local on-demand retail and delivery in China. It operates JDDJ, one of China’s largest local on-demand retail platforms for retailers and brand owners, and Dada Now, a leading local on-demand delivery platform open to merchants and individual senders across various industries and product categories. The Company’s two platforms are inter-connected and mutually beneficial. The Dada Now platform enables improved delivery experience for participants on the JDDJ platform through its readily accessible fulfillment solutions and strong on-demand delivery infrastructure. Meanwhile, the vast volume of on-demand delivery orders from the JDDJ platform increases order volume and density for the Dada Now platform.

For more information, please visit https://ir.imdada.cn/.

For investor and media inquiries, please contact:

Dada Nexus Limited
Investor Relations
Ms. Caroline Dong
E-mail:  ir@imdada.cn

Christensen

In China
Mr. Rene Vanguestaine
Phone: +86-178-1749 0483
E-mail: rvanguestaine@christensenir.com 

In US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
E-mail: lbergkamp@christensenir.com 

FAQ

What is the DADA share repurchase program amount?

Dada has authorized a share repurchase program of up to US$150 million.

How will Dada fund the share buyback?

The share buyback will be funded through Dada's existing cash balance.

When is the DADA share repurchase program expected to take place?

The share repurchase program is set to last for 12 months.

What platforms does Dada operate?

Dada operates JDDJ and Dada Now, focusing on local on-demand delivery and retail.