Greystone Logistics Announces $1 Million Stock Repurchase Program

Rhea-AI Summary

Greystone Logistics (OTCQB: GLGI) announced a $1 million stock repurchase program authorized by its Board of Directors. The program will commence in the second fiscal quarter of 2024 and span 12 months. Shares may be repurchased in the open market under Rule 10b5-1 or through other methods, adhering to Rule 10b-18 and applicable regulations.

The number and value of shares repurchased will depend on factors such as the stock's intrinsic value, market conditions, liquidity, and legal requirements. The program is discretionary and can be altered or stopped at any time. Funding for the buybacks will come from existing cash reserves and future free cash flow. CEO Warren Kruger emphasized that the buyback reflects the Board's confidence in the company's future and aims to enhance shareholder value.

Positive

• Authorization of up to $1 million stock repurchase program.
• Repurchases to begin in Q2 of 2024, showing confidence in the company's stock.
• Funding from cash on hand and future free cash flow, indicating financial stability.

Negative

• The company is not obligated to repurchase any shares, indicating potential uncertainty.

TULSA, Okla., June 28, 2024 (GLOBE NEWSWIRE) -- Greystone Logistics, Inc. (“Greystone Logistics” or the “Company”) (OTCQB:GLGI) today announced that its Board of Directors has approved a stock repurchase program, pursuant to which the Company is authorized to purchase up to $1 million of its common stock over 12 months. Repurchases pursuant to the stock repurchase program are expected to commence during the second fiscal quarter of 2024.

Under the stock repurchase program, the Company may repurchase shares from time to time in the open market at prevailing market prices, pursuant to one or more Rule 10b5-1 plans, or otherwise. Repurchases under the stock repurchase program will be in accordance with the terms of Rule 10b-18 promulgated under the Securities Exchange Act of 1934, as amended, and will be made in accordance with applicable laws and regulations in effect from time to time. The timing, as well as the number and value of shares repurchased under the program, will be determined by the Company at its discretion and will depend on a variety of factors, including its assessment of the intrinsic value of the Company’s common stock, the market price of the Company’s common stock, general market and economic conditions, available liquidity, compliance with the Company’s debt and other agreements, applicable legal requirements, the nature of other investment opportunities available to the Company, and other considerations. The Company is not obligated to purchase any shares under the repurchase program, and the program may be suspended, modified, or discontinued at any time without prior notice. The Company expects to fund the repurchases by using cash on hand and expected free cash flow to be generated in the future.

Warren Kruger, Chief Executive Officer of Greystone Logistics, commented, “The Board has shown its confidence in the future of Greystone Logistics the last few years by authorizing significant invested capital for growth. There is Board consensus for capitalizing on attractive market opportunities by employing strategic stock buybacks to enhance shareholder value.”

About Greystone Logistics

Greystone Logistics is a "green" manufacturing company that reprocesses recycled plastic and designs, manufactures and sells high-quality 100% recycled plastic pallets that provide logistical solutions for a wide range of industries such as the food and beverage, automotive, chemical, pharmaceutical and consumer products. The Company's technology, including a proprietary blend of recycled plastic resins used in the injection molding equipment and patented pallet designs, allows production of high-quality pallets more rapidly and at lower costs than many other processes. The recycled plastic for Greystone’s pallets helps control material costs while reducing environmental waste and provides cost advantages over users of virgin resin.

Forward-Looking Statements

This press release contains forward-looking statements. All statements other than statements of historical facts included in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by words such as “believe,” “expect,” “anticipate,” “plan,” “potential,” “continue” or similar expressions. Such forward-looking statements include risks and uncertainties, and there are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors, risks and uncertainties are discussed in the Company’s filings with the Securities and Exchange Commission. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond the Company’s control which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Company’s current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Contact

Brendan Hopkins
Investor Relations
Email: investorrelations@greystonelogistics.com
Phone: (407) 645-5295
https://www.greystonepallets.com

FAQ

What is the value of the stock repurchase program announced by Greystone Logistics?

Greystone Logistics announced a $1 million stock repurchase program.

When will the stock repurchase program for GLGI start?

The stock repurchase program will commence in the second fiscal quarter of 2024.

How long will Greystone Logistics' stock repurchase program last?

The stock repurchase program will span 12 months.

What factors will influence Greystone Logistics' stock repurchases under the new program?

Factors include intrinsic stock value, market price, economic conditions, liquidity, compliance with agreements, legal requirements, and other investment opportunities.

How will Greystone Logistics fund its $1 million stock repurchase program?

The company will use cash on hand and expected future free cash flow to fund the repurchases.

What legal rules will guide the stock repurchase program of GLGI?

The repurchases will be made in accordance with Rule 10b-18 under the Securities Exchange Act of 1934 and applicable regulations.

Can Greystone Logistics modify or suspend its stock repurchase program?

Yes, the company can suspend, modify, or discontinue the program at any time without prior notice.