Kornit Digital Announces Board Authorization of $100 Million Share Repurchase Program
Kornit Digital (Nasdaq: KRNT), a leader in sustainable, on-demand digital fashion and textile production technologies, has announced a $100 million share repurchase program authorized by its Board of Directors. This program, combined with $65 million in repurchases since 2023, demonstrates the Board's confidence in Kornit's strategy and long-term potential. The repurchase may be executed through various methods, including open market purchases and privately negotiated transactions, in compliance with U.S. securities laws. The program is flexible, allowing for suspension or discontinuation at the Company's discretion. Implementation will begin after a 30-day creditor objection period, with timing and volume dependent on market conditions, financial results, and other factors. Kornit plans to fund repurchases with existing cash reserves.
Kornit Digital (Nasdaq: KRNT), leader nelle tecnologie sostenibili di produzione digitale di moda e tessuti on-demand, ha annunciato un programma di riacquisto di azioni da 100 milioni di dollari autorizzato dal suo Consiglio di Amministrazione. Questo programma, insieme ai 65 milioni di dollari in riacquisti dal 2023, dimostra la fiducia del Consiglio nella strategia di Kornit e nel suo potenziale a lungo termine. Il riacquisto può essere effettuato attraverso vari metodi, inclusi acquisti sul mercato aperto e transazioni private, in conformità con le leggi sui titoli negli Stati Uniti. Il programma è flessibile, consentendo la sospensione o l'interruzione a discrezione della Società. L'attuazione inizierà dopo un periodo di opposizione dei creditori di 30 giorni, con tempistiche e volumi dipendenti dalle condizioni di mercato, dai risultati finanziari e da altri fattori. Kornit prevede di finanziare i riacquisti con le riserve di cassa esistenti.
Kornit Digital (Nasdaq: KRNT), líder en tecnologías sostenibles de producción digital de moda y textiles bajo demanda, ha anunciado un programa de recompra de acciones de 100 millones de dólares autorizado por su Junta Directiva. Este programa, junto con los 65 millones de dólares en recompras desde 2023, demuestra la confianza de la Junta en la estrategia de Kornit y en su potencial a largo plazo. La recompra puede llevarse a cabo a través de diversos métodos, incluyendo compras en el mercado abierto y transacciones negociadas de forma privada, cumpliendo con las leyes de valores de EE. UU. El programa es flexible, permitiendo su suspensión o interrupción a discreción de la Compañía. La implementación comenzará después de un período de oposición de 30 días por parte de los acreedores, siendo el momento y el volumen dependientes de las condiciones del mercado, los resultados financieros y otros factores. Kornit planea financiar las recompras con las reservas de efectivo existentes.
Kornit Digital (Nasdaq: KRNT)는 지속 가능하고 주문형 디지털 패션 및 섬유 생산 기술의 선도 기업으로, 이사회에서 승인한 1억 달러 규모의 자사주 매입 프로그램을 발표했습니다. 2023년부터 6,500만 달러의 자사주 매입과 함께 이 프로그램은 Kornit의 전략과 장기 잠재력에 대한 이사회의 신뢰를 보여줍니다. 매입은 공개 시장 구매 및 사적으로 협의된 거래 등 다양한 방법으로 진행될 수 있으며, 미국 증권 법규를 준수해야 합니다. 이 프로그램은 유연하여 회사의 재량에 따라 중단하거나 종료할 수 있습니다. 시행은 30일 채권자 이의 제기 기간이 지나고 시작되며, 시기와 규모는 시장 상황, 재무 결과 및 기타 요인에 따라 달라집니다. Kornit는 기존 현금 보유액으로 매입을 자금 지원할 계획입니다.
Kornit Digital (Nasdaq: KRNT), un leader dans les technologies de production numérique de mode et de textile écologiques et à la demande, a annoncé un programme de rachat d'actions de 100 millions de dollars autorisé par son Conseil d'Administration. Ce programme, combiné avec 65 millions de dollars de rachats depuis 2023, démontre la confiance du Conseil dans la stratégie de Kornit et son potentiel à long terme. Le rachat pourra être réalisé par divers moyens, y compris des achats sur le marché ouvert et des transactions négociées en privé, en conformité avec les lois sur les valeurs mobilières américaines. Le programme est flexible, permettant une suspension ou un arrêt à la discrétion de l'Entreprise. La mise en œuvre débutera après un délai d'opposition des créanciers de 30 jours, avec des délais et des volumes dépendant des conditions du marché, des résultats financiers et d'autres facteurs. Kornit prévoit de financer les rachats avec ses réserves de trésorerie existantes.
Kornit Digital (Nasdaq: KRNT), ein führendes Unternehmen im Bereich nachhaltiger, bedarfsgerechter digitaler Produktions-technologien für Mode und Textilien, hat ein von seinem Vorstand genehmigtes Aktienrückkaufprogramm über 100 Millionen Dollar bekannt gegeben. Dieses Programm, zusammen mit 65 Millionen Dollar an Rückkäufen seit 2023, zeigt das Vertrauen des Vorstands in die Strategie und das langfristige Potenzial von Kornit. Der Rückkauf kann durch verschiedene Methoden durchgeführt werden, einschließlich Käufen auf dem offenen Markt und privat ausgehandelten Transaktionen, wobei die US-Wertpapiergesetze eingehalten werden. Das Programm ist flexibel und erlaubt es dem Unternehmen, den Rückkauf nach eigenem Ermessen auszusetzen oder einzustellen. Die Umsetzung beginnt nach einer 30-tägigen Einwendungfrist für Gläubiger, wobei Zeitpunkt und Volumen von den Marktbedingungen, den finanziellen Ergebnissen und anderen Faktoren abhängen. Kornit plant, die Rückkäufe mit den vorhandenen Barmittelreserven zu finanzieren.
- Board authorization of $100 million share repurchase program
- Additional $65 million in share repurchases executed since 2023
- Demonstrates Board's confidence in company strategy and long-term potential
- Flexibility in repurchase methods and timing
- Potential to increase shareholder value through stock price support
- Potential reduction in cash reserves for future investments or operations
- 30-day delay for program implementation due to creditor objection period
- Repurchase program does not guarantee stock price appreciation
Insights
Kornit Digital's $100 million share repurchase program signals strong confidence in the company's future prospects. This move, coupled with $65 million in previous repurchases since 2023, demonstrates a commitment to shareholder value. Share buybacks can potentially boost earnings per share and stock price by reducing the number of outstanding shares. However, investors should note that the program's execution is subject to various factors, including market conditions and regulatory approvals. The 30-day creditor objection period adds a layer of complexity. While this program may be viewed positively by the market, it's important to consider whether the
This share repurchase program reflects Kornit Digital's strategy to optimize its capital structure and potentially signal undervaluation. In the digital textile printing market, which is projected to grow at a CAGR of
The structure of Kornit Digital's share repurchase program demonstrates careful legal consideration. The company's compliance with U.S. securities laws, particularly Rule 10b-18 and potential Rule 10b5-1 plans, provides a framework to execute buybacks while minimizing legal risks. The 30-day creditor objection period, in accordance with Israeli regulations, adds an extra layer of protection for the company's financial obligations. This approach balances shareholder interests with creditor rights. However, investors should be aware that the program's non-obligatory nature and potential for suspension or discontinuation at the company's discretion introduce uncertainty. The legal framework allows for flexibility, but also means the full
ROSH-HA`AYIN, Israel, Sept. 10, 2024 (GLOBE NEWSWIRE) -- Kornit Digital Ltd. (“Kornit” or the “Company”) (Nasdaq: KRNT), a worldwide market leader in sustainable, on-demand, digital fashion and textile production technologies, today announced that its Board of Directors has authorized a program to repurchase up to
Under the Board authorized repurchase program, the Company’s ordinary shares may be repurchased from time to time using a variety of methods, which may include open market purchases, privately negotiated transactions or otherwise, all in accordance with U.S. securities laws and regulations, including Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company may also, from time to time, enter into plans that are compliant with Rule 10b5-1 of the Exchange Act to facilitate repurchases of its shares under this authorization. The repurchase program does not obligate the Company to acquire any particular amount of ordinary shares, and the repurchase program may be suspended or discontinued at any time at the Company's discretion. Repurchases under the repurchase program may begin after the conclusion of a 30-day period for creditors of the Company to object to the Company's intent to effect a deemed distribution by way of repurchase in accordance with the Israeli Companies Regulations (Relief for Public Companies Whose Securities are Traded on Stock Exchanges Outside of Israel), 5760-2000 and the Israeli Companies Regulations (Approval of Distribution), 5761–2001. The actual timing, number, and value of shares to be repurchased will depend on a number of factors, including the market price of the Company's ordinary shares, general market and economic conditions, any objections received by the Company from its creditors, the Company's financial results and liquidity, and other considerations. The Company expects to fund repurchases with cash on hand.
About Kornit Digital
Kornit Digital (NASDAQ: KRNT) is a worldwide market leader in sustainable, on-demand, digital fashion and textile production technologies. The Company offers end-to-end solutions including digital printing systems, inks, consumables, software, and fulfillment services through its global fulfillment network. Headquartered in Israel with offices in the USA, Europe, and Asia Pacific, Kornit Digital serves customers in more than 100 countries and states worldwide. To learn more about how Kornit Digital is boldly transforming the world of fashion and textiles, visit www.kornit.com.
Forward Looking Statements
Certain statements in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other U.S. securities laws. Forward-looking statements are characterized by the use of forward-looking terminology such as “will,” “expects,” “anticipates,” “believes,” “intends,” “planned,” or other similar words. These forward-looking statements include, but are not limited to, statements relating to the Company’s objectives, plans and strategies, including with respect to the Company’s authorized share repurchase program, statements regarding the Company’s results of operations and financial condition and all statements that address developments that the Company expects or anticipates will or may occur in the future. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. The Company has based these forward-looking statements on assumptions and assessments made by its management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include, among other things: potential objection to the share repurchase program by the Company’s creditors and/or failure to receive Israeli court approval after any such objection; the Company’s degree of success in developing, introducing and selling new or improved products and product enhancements including specifically the Company’s Poly Pro and Presto products, and the Company’s Apollo direct-to-garment platform; the extent of the Company’s ability to increase sales of its systems, ink and consumables; the development of the market for digital textile printing; and those additional factors referred to under “Risk Factors” in Item 3.D of the Company’s Annual Report on Form 20-F for the year ended December 31, 2023, filed with the SEC on March 28, 2024. Any forward-looking statements in this press release are made as of the date hereof, whether as a result of new information, future events or otherwise, except as required by law.
Investor Contact:
Jared Maymon
Global Head of Investor Relations & Strategic Finance
Jared.Maymon@Kornit.com
FAQ
What is the size of Kornit Digital's new share repurchase program?
How much has Kornit Digital (KRNT) spent on share repurchases since 2023?
When will Kornit Digital's share repurchase program begin?
How will Kornit Digital fund the share repurchases?
Is Kornit Digital (KRNT) obligated to repurchase a specific amount of shares?
