Sequans Announces Launch of American Depositary Share Buyback Program

Rhea-AI Summary

Sequans Communications (NYSE: SQNS) has announced a significant American Depositary Share (ADS) buyback program, authorizing the repurchase of up to 1.57 million ADSs, representing approximately 10% of outstanding shares, through June 30, 2026.

The company, which has adopted Bitcoin as its primary treasury reserve asset, will execute the buyback program at its discretion based on market conditions. The initiative complements Sequans' recent ATM capital raising tool aimed at growing its Bitcoin holdings and increasing net asset value (NAV).

Positive

• Authorization to repurchase 10% of outstanding ADSs shows confidence in company value
• Flexible buyback timeline until June 2026 allows strategic market timing
• Program complements existing ATM tool for Bitcoin holdings growth
• Strategic approach to enhance shareholder value through dual Bitcoin and buyback strategy

Negative

• No predetermined price range for buyback announced
• Program may be modified, suspended, or discontinued at company's discretion
• Exposure to Bitcoin volatility through treasury strategy

Insights

Financial Analyst

Sequans announces 10% ADS buyback program while simultaneously pursuing Bitcoin treasury strategy, creating unusual dual capital allocation approach.

Sequans Communications has announced a share repurchase program for up to 1.57 million American Depositary Shares, representing approximately 10% of their outstanding ADSs. The program, running through June 2026, creates a rather unusual capital allocation dynamic when combined with their recently established at-the-market (ATM) offering program.

What makes this announcement particularly noteworthy is Sequans' self-description as "a pioneer in adopting Bitcoin as its primary treasury reserve asset" - a radical departure from traditional semiconductor company treasury management. The company is pursuing a two-pronged and seemingly contradictory capital strategy: raising cash through the ATM to purchase Bitcoin while simultaneously buying back shares.

CEO Georges Karam frames this as providing "flexibility" to support share price when market conditions warrant, but this creates a complex capital allocation framework. On one hand, the company is diluting shareholders through the ATM to acquire more Bitcoin (increasing their cryptocurrency exposure), while on the other hand, they're reducing share count through buybacks to support the stock price and enhance net asset value (NAV).

This dual approach signals management's belief that both the company's shares and Bitcoin may be undervalued at various points, allowing them to opportunistically shift between strategies. However, this also introduces significant volatility risk through Bitcoin exposure while potentially confusing market participants about the company's primary focus - semiconductor solutions or cryptocurrency investment.

For a semiconductor firm, this Bitcoin-centric treasury approach represents a substantial deviation from industry norms where cash is typically preserved for R&D, acquisitions, or returned to shareholders through dividends or share repurchases. Investors will likely scrutinize whether management has the expertise to effectively time both Bitcoin purchases and share repurchases in this unique dual strategy.

Paris, France--(Newsfile Corp. - September 30, 2025) - Sequans Communications S.A. (NYSE: SQNS), a pioneer in adopting Bitcoin as its primary treasury reserve asset and a leading provider of cellular IoT semiconductor solutions, today announced that its Board of Directors has authorized a program to repurchase up to 1.57 million American Depositary Shares ("ADSs") at the current ADS ratio, representing approximately 10% of the Company's currently outstanding ADSs, through June 30, 2026. This initiative reflects the Company's commitment to long-term value creation through its Bitcoin Treasury strategy.

"Our treasury strategy is designed to be dynamic and responsive," said Georges Karam, CEO of Sequans. "While we recently established an ATM tool to enable us to raise capital to grow our Bitcoin holdings and increase net asset value ("NAV"), the buyback program gives us the flexibility to act when market conditions present an opportunity to support our share price and enhance market NAV. Together, these tools strengthen our ability to execute on our long-term vision and deliver value to shareholders."

Under the authorization, Sequans may repurchase ADSs at its discretion from time to time, in amounts and at prices deemed appropriate, subject to market conditions and compliance with applicable legal requirements, including that the Company not be in the possession of material non-public information. Purchases may be made through open market transactions or other methods permitted under securities laws and regulations, including Rule 10b-18 under the Securities Exchange Act of 1934, as amended.

The ADS repurchase program does not obligate Sequans to acquire any specific number of shares and may be modified, suspended, or discontinued at any time at the Company's discretion.

About Sequans

Sequans Communications S.A. (NYSE: SQNS) is a leading fabless semiconductor company specializing in wireless 4G/5G cellular technology for the Internet of Things (IoT) as well as a pioneer in Bitcoin Treasury. Sequans views Bitcoin as a long-term investment and intends to strategically accumulate it as its primary treasury reserve asset. The company's approach involves acquiring and holding Bitcoin using net proceeds from equity and debt issuances - executed from time to time based on market conditions - as well as cash generated from operations and intellectual property monetization.

Sequans' engineers design and develop innovative, secure, and scalable technologies that power the next generation of AI-connected applications - including secured payment, smart mobility and logistics, smart cities, industrial, e-health, and smart homes. Sequans offers a comprehensive portfolio of 4G/5G solutions, including LTE-M/NB-IoT, 4G LTE Cat 1bis, and 5G NR RedCap/eRedCap platforms, all purpose-built for IoT and delivering breakthroughs in wireless connectivity, power efficiency, security, and performance. The company also provides advanced design services and technology licensing. Sequans management believes the combination of a strategic Bitcoin reserve and deep focus on semiconductor innovation positions the company for long-term value creation.

Founded in 2003, Sequans is headquartered in France and operates globally, with offices in the United States, United Kingdom, Switzerland, Israel, Finland, Taiwan, and China.

Visit Sequans at sequans.com and follow us on LinkedIn and X

Contacts

Sequans investor relations:
David Hanover/Rob Kelly, KCSA Strategic Communications (USA), +1 212.682.6300, ir@sequans.com

Sequans media relations:
Linda Bouvet (France), +33 170721600, media@sequans.com

Forward-Looking Statements

This press release contains certain statements that are, or may be deemed to be, forward-looking statements with respect to potential repurchases of ADSs and the Company's bitcoin treasury strategy. These forward-looking statements include, but are not limited to, statements that are not historical fact. These forward-looking statements can be identified by the fact that they do not relate to historical or current facts. Forward-looking statements also often use words such as "anticipate," "committed to", "target," "continue," "estimate," "expect," "forecast," "intend," "may," "plan," "goal," "believe," "hope," "aims," "continue," "could," "project," "should," "will" or other words of similar meaning. These statements are based on assumptions and assessments made by Sequans in light of its experience and perception of historical trends, current conditions, future developments and other factors it believes appropriate. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future and the factors described in the context of such forward-looking statements in this announcement could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct, and you are therefore cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this announcement.

Forward-looking statements are not guarantees of future performance. Such forward-looking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Such risks and uncertainties include, but are not limited to, our ability to successfully implement our Bitcoin treasury strategy. Many factors could cause actual results to differ materially from those projected or implied in any forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business and competitive environments, market and regulatory forces, including tariffs and trade wars. If any one or more of these risks or uncertainties materialize or if any one or more of the assumptions prove incorrect, actual results may differ materially from those expected, estimated or projected. Such forward-looking statements should therefore be construed in the light of such factors. A more complete description of these and other material risks can be found in Sequans' filings with the SEC, including its annual report on Form 20-F for the year ended December 31, 2024, subsequent filings on Form 6-K and other documents that may be filed from time to time with the SEC. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this announcement. Sequans undertakes no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by applicable law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/268491

FAQ

How many shares is Sequans (NYSE:SQNS) authorized to repurchase in its buyback program?

Sequans is authorized to repurchase up to 1.57 million American Depositary Shares (ADSs), representing approximately 10% of currently outstanding ADSs.

When does Sequans' (NYSE:SQNS) share buyback program expire?

The share buyback program is authorized to run through June 30, 2026.

What is unique about Sequans' (NYSE:SQNS) treasury strategy?

Sequans has adopted Bitcoin as its primary treasury reserve asset and combines this strategy with an ATM tool for capital raising and the new buyback program to enhance shareholder value.

How will Sequans (NYSE:SQNS) execute its share buyback program?

Sequans will execute the buyback through open market transactions or other permitted methods, subject to market conditions and compliance with securities laws, including Rule 10b-18.

What is the purpose of Sequans' (NYSE:SQNS) buyback program?

The program aims to support share price, enhance market NAV (Net Asset Value), and demonstrate the company's commitment to long-term value creation through its Bitcoin Treasury strategy.