Moving iMage Technologies (MiT) Announces Stock Repurchase Program and 10b5-1 Stock Trading Plan

Rhea-AI Summary

Moving iMage Technologies (MITQ) announces a new $363,000 share repurchase program, replacing the previous $1.0 million program. The program aims to repurchase shares up to the specified amount by June 30, 2024, or when the target is met. MiT had repurchased 6.3% of total shares for $637,000 under the previous plan. Additionally, a 10b5-1 stock trading plan was established to allow repurchases during blackout periods, expanding repurchase days from 90 to 250 annually.

Insights

Market Research Analyst

The recent announcement by Moving iMage Technologies regarding the initiation of a new share repurchase program is a strategic financial decision. This action typically signals to the market that the company believes its shares are undervalued and represent a good investment opportunity. By buying back its own shares, the company can potentially increase earnings per share (EPS) and return on equity (ROE), which could lead to a more favorable perception among investors and analysts.

However, it's important to note that the repurchase program is relatively small at $363,000, which might not have a significant impact on the stock price or the company's financial structure. The size of the buyback relative to the company's overall market capitalization should be considered when assessing the potential impact on the stock. Additionally, the implementation of a 10b5-1 trading plan allows for systematic repurchases during periods when insiders are typically restricted from trading, suggesting a structured approach to capital management.

Financial Analyst

From a financial perspective, the repurchase of approximately 6.3% of the total shares outstanding for $637,000 under the prior plan indicates a proactive approach to shareholder value. The repurchase rate and the remaining budget for the new program should be analyzed in the context of the company's cash flow, debt levels and investment opportunities. If the repurchase is executed without compromising the company's ability to invest in growth or manage debt, it could be seen as a positive signal.

Investors should also consider the timing of the repurchase program. With an expiration date of June 30, 2024, or when the maximum dollar amount is reached, the timeline suggests a short-term financial strategy. It is essential to evaluate whether this aligns with the company's long-term strategic goals and how it fits into the broader financial planning of the organization.

Legal Expert

The adherence to Rule 10b-18 under the U.S. Securities Exchange Act of 1934 is a compliance detail that should not be overlooked. This rule sets forth the conditions for safe harbor for issuers to repurchase their own stock in the market, helping to prevent potential market manipulation. The establishment of a 10b5-1 plan further demonstrates the company's commitment to regulatory compliance, as it allows for share repurchases even during periods when insiders might possess non-public information.

It's critical for stakeholders to understand that the involvement of an independent U.S. broker-dealer as the agent for the repurchase ensures that the transactions are conducted at arm's length, which is designed to maintain market integrity. The legal framework surrounding such repurchases is complex and adherence to these regulations is a positive indication of the company's governance practices.

FOUNTAIN VALLEY, Calif.--(BUSINESS WIRE)-- Moving iMage Technologies (NYSE American: MITQ) (“MiT”), a leading technology and services company for cinema, Esports, stadiums, arenas and other out-of-home entertainment venues, today announced it has adopted a new share repurchase program to replace the Company’s previous $1.0 million share repurchase program that expired on March 23, 2024.

The new share repurchase program authorizes the repurchase of up to $363,000 worth of shares and will expire at the earlier of June 30, 2024, or when the maximum dollar amount of shares is repurchased. Through March 22, 2024, under the prior repurchase plan, the Company repurchased approximately 6.3% of the total shares outstanding for $637,000. All repurchases will be implemented in accordance with the applicable requirements of Rule 10b-18 under the U.S. Securities Exchange Act of 1934.

The Company also established a 10b5-1 stock trading plan that allows for repurchases of MITQ common stock during blackout periods based on MiT's insider trading policy that surrounds important corporate events, announcements and quarterly earnings releases, therefore expanding the number of days available to repurchase shares from approximately 90 days to 250 days on an annual basis. An independent U.S. broker-dealer is acting as the Company’s agent to purchase its shares on pre-arranged terms pursuant to the Rule 10b5-1 stock trading plan.

About Moving iMage Technologies

MOVING iMAGE TECHNOLOGIES (NYSE American: MITQ) is a leading provider of technology, products, and services to the Motion Picture Exhibition industry and is expanding into live entertainment venues and Esports. We sell proprietary products, which we design and manufacture in-house, and are developing, introducing, and supporting a wide range of disruptive technologies that will bring SaaS and subscription-based products. Our Caddy brand of proprietary manufactured products is a leading provider of cup holders, trays, and other products to entertainment and sports venues. For more information, visit www.movingimagetech.com.

Forward-Looking Statements

All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate,” “target” and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks and should be consulted along with this release. To the extent permitted under applicable law, we assume no obligation to update any forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240401403018/en/

Moving iMage Technologies Investor Relations and Media Contacts:

Brian Siegel, IRC^®, M.B.A.

Vice President, Strategic Communications and Investor Relations

Moving iMage Technologies

Senior Managing Director

Hayden IR

(346) 396-8696

brian@haydenir.com

Source: Moving iMage Technologies

FAQ

What is the new share repurchase program amount announced by Moving iMage Technologies (MITQ)?

Moving iMage Technologies (MITQ) announced a new share repurchase program of up to $363,000.

When will the new share repurchase program expire?

The new share repurchase program will expire at the earlier of June 30, 2024, or when the maximum dollar amount of shares is repurchased.

What percentage of total shares did MiT repurchase under the previous plan?

MiT repurchased approximately 6.3% of the total shares outstanding for $637,000 under the previous repurchase plan.

What is the purpose of the 10b5-1 stock trading plan established by Moving iMage Technologies?

The 10b5-1 stock trading plan allows for repurchases of MITQ common stock during blackout periods, expanding the repurchase days from approximately 90 to 250 on an annual basis.

Who is acting as the Company's agent for purchasing shares under the Rule 10b5-1 stock trading plan?

An independent U.S. broker-dealer is acting as the Company's agent to purchase its shares on pre-arranged terms pursuant to the Rule 10b5-1 stock trading plan.