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Littleton, Colorado – CPI card group Co., Ltd. . (NASDAQ: (TSX:)), a provider of payments technology solutions, announces a new agreement to continue its stock repurchase program with Tricor Pacific Capital Partners (Fund IV) US, LP, managed by Parallel49 Equity ULC . This second agreement will begin on April 1, 2024, following near completion of the first repurchase agreement, which expires on March 31, 2024.
Under the terms of the new agreement, CPI Card Group will purchase up to 325,000 shares from Parallel 49 during the period April to June 2024, three times the amount of open market acquisitions from other shareholders. I will do it. The repurchase price will be 98% of the volume-weighted average price of open market purchases during the same period, with settlement occurring within five days after the end of the period.
The company's audit committee has approved the transaction, which is part of a broader $20 million stock repurchase authorization. CPI Card Group also plans to close the acquisition, which was made pursuant to the original agreement, shortly after March 31st. As of the end of 2023, Parallel 49 held approximately 57% of CPI's outstanding shares, or 6.6 million shares. The 3:1 share repurchase ratio is designed to maintain or reduce Parallel49's ownership percentage while minimizing the impact on CPI's public stock.
CPI Card Group's existing stock repurchase authorization allows the company to repurchase up to $20 million of its common stock through December 31, 2024, in the open market or in private transactions. Future agreements similar to the current one with Parallel 49 may be considered to the extent that: This authorization.
CPI Card Group specializes in a wide range of credit, debit and prepaid card products, including Software-as-a-Service (SaaS) instant issuance. The company was recognized as one of the Best Companies to Work For in 2024 by U.S. News and World Report, highlighting its commitment to the payments industry and customer satisfaction.
This press release contains forward-looking statements that are based on current expectations and projections about future events. Investors and readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this announcement. Information is based on press release.
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