Retractable Technologies, Inc. Announces Termination of Buyback Plan

Rhea-AI Summary

Retractable Technologies, Inc. (RVP) has terminated its Rule 10b5-1/10b-18 Repurchase Plan effective April 14, 2022. Since June 2021, the company repurchased 1,087,145 shares for approximately $8.1 million. The decision to cancel the plan arose from the Board's observation that the stock price was not reflective of the company's economic performance, despite trading at a discount. The current market capitalization is below the asset value of the corporation.

Positive

• Repurchased 1,087,145 shares for approximately $8.1 million, showing commitment to shareholder value.

Negative

• Termination of the repurchase plan signals potential concerns regarding stock valuation and market confidence.
• Current market capitalization is less than the asset value, indicating a disconnect between market perception and actual worth.

LITTLE ELM, Texas--(BUSINESS WIRE)-- Retractable Technologies, Inc. (NYSE American: RVP) reports that, effective April 14, 2022, it has terminated its Rule 10b5-1/10b-18 Repurchase Plan dated June 4, 2021. Since June 2021, Retractable has purchased a total of 1,087,145 shares for approximately $8.1 million under the Plan. The Board of Directors determined to cancel the plan because the stock price appears not to be correlated with the economic performance of the corporation at this time. This determination to terminate the repurchase plan was made despite the fact that the stock is trading at a discount: our current market capitalization is less than the asset value of the corporation.

For more information on Retractable, visit its website at www.retractable.com.

Forward-looking statements in this press release are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 and reflect Retractable's current views with respect to future events. Retractable believes that the expectations reflected in such forward-looking statements are accurate. However, Retractable cannot assure you that such expectations will materialize. Actual future performance could differ materially from such statements.

Factors that could cause or contribute to such differences include, but are not limited to: the impact of COVID-19 on all facets of logistics and operations, as well as costs, Retractable’s ability to scale up production volumes in response to an increase in demand, potential tariffs, Retractable's ability to maintain liquidity; Retractable's maintenance of patent protection; Retractable's ability to maintain favorable third party manufacturing and supplier arrangements and relationships; foreign trade risk; Retractable's ability to access the market; production costs; the impact of larger market players in providing devices to the safety market; and other risks and uncertainties that are detailed from time to time in Retractable's periodic reports filed with the U.S. Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220418005545/en/

Retractable Technologies, Inc.

John W. Fort III, 888-806-2626 or 972-294-1010

Vice President, Chief Financial Officer, and Chief Accounting Officer

Source: Retractable Technologies, Inc.

FAQ

Why did Retractable Technologies terminate its share repurchase plan?

The plan was terminated because the Board determined the stock price was not correlated with the company's economic performance.

What is the total amount spent on share repurchases by Retractable Technologies?

Retractable Technologies spent approximately $8.1 million to repurchase 1,087,145 shares since June 2021.

How does the termination of the repurchase plan affect RVP stock?

The termination may signal concerns about the company's stock valuation and could impact investor confidence.