WidePoint Reinstates Share Repurchase Program

Rhea-AI Summary

WidePoint Corporation (NYSE American: WYY) has reinstated its share repurchase program, allowing for the repurchase of up to $2.1 million of its common stock, which was suspended during the COVID-19 pandemic. With 9.1 million shares outstanding, the company views this as an opportunity to enhance shareholder value. CEO Jin Kang stated that the robust balance sheet enables this decision, reflecting confidence in the company's growth potential. The repurchases will comply with SEC regulations and will be financed through existing cash.

Positive

• Reinstatement of the share repurchase program valued at $2.1 million, enhancing shareholder value.
• Strong balance sheet allows for the buyback, indicating financial health and future growth potential.

Negative

• None.

FAIRFAX, VA / ACCESSWIRE / September 27, 2021 / WidePoint Corporation (NYSE American:WYY), the leading provider of Trusted Mobility Management (TM2) specializing in Identity Management (IdM), Telecommunications Lifecycle Management, and Digital Billing & Analytics solutions, has reinstated its prior share repurchase program to which it may repurchase up to $2.1 million of its common stock, which plan was suspended on March 9, 2020 as a precaution due to the COVID-19 pandemic.

Under the share repurchase program, repurchases of the issued and outstanding shares may be made from time-to-time in open market and privately negotiated transactions. WidePoint currently has 9.1 million shares outstanding.

"We elected to pause the share repurchase program in the wake of the pandemic to preserve cash and maintain the utmost financial flexibility," said WidePoint CEO Jin Kang. "With our robust balance sheet and strong business fundamentals, now is the right time to reinstate the program and take advantage of opportunities to repurchase our shares. Additionally, we believe the share repurchase program reflects our continued confidence in the strength and future growth potential of WidePoint to shareholders."

Share repurchases will be made in compliance with the SEC's Rule 10b-18, subject to market conditions, available liquidity, cash flow, applicable legal requirements, and other factors. This program does not obligate WidePoint to acquire any particular amount of common stock and the program may be suspended or discontinued at any time. WidePoint intends to finance the purchases with existing cash balances.

About WidePoint

WidePoint Corporation (NYSE American:WYY) is a leading provider of Trusted Mobility Management (TM2) solutions, including Identity Management (IdM), secure Managed Mobility Services (MMS), telecom management, and digital billing and analytics. For more information, visit widepoint.com.

Investor Relations:
Gateway Investor Relations
Matt Glover or John Yi
949-574-3860
WYY@gatewayir.com

SOURCE: WidePoint Corporation

View source version on accesswire.com:
https://www.accesswire.com/665518/WidePoint-Reinstates-Share-Repurchase-Program

FAQ

What is the purpose of WidePoint's share repurchase program?

The share repurchase program enhances shareholder value and reflects the company's confidence in its future growth.

How much stock will WidePoint repurchase under its program?

WidePoint plans to repurchase up to $2.1 million of its common stock.

How many shares does WidePoint currently have outstanding?

WidePoint currently has 9.1 million shares outstanding.

How will WidePoint finance its stock buyback?

The buyback will be financed using WidePoint's existing cash balances.

When was the share repurchase program first suspended?

The share repurchase program was suspended on March 9, 2020, due to the COVID-19 pandemic.