XMax has authorized a share repurchase program of up to $30 million, with purchases limited to prices below $5.50 per share. The program is designed to run for three months once it begins, but the company has not set a start date and is not required to buy any shares.
The board approved the program on October 31 and revised the conditions for its start on November 2. XMax announced it on November 3.
Key details
- Spending limit and price ceiling: XMax may spend up to $30 million to repurchase its outstanding common stock, but only at prices below $5.50 per share.
- Start date depends on several steps: Purchases can begin only after XMax releases its results for the quarter ended September 30, publicly discloses any material nonpublic information, and hires a broker-dealer to carry out the program.
- Three-month duration: The program will expire three months after its start date.
- Purchases are discretionary: XMax may buy shares from time to time in the open market, potentially through a trading plan. Management will decide whether and when to buy based on factors including the stock’s trading price, market conditions, liquidity and capital needs, and legal requirements.
- Cash funding: The company expects to use existing cash and cash equivalents.
- No minimum purchases: The authorization does not commit XMax to spend the full $30 million or buy any particular number of shares. The company may also suspend, change, or end the program at any time.
What changes for investors
The authorization gives XMax the option to use cash to buy back shares, subject to the price ceiling and other conditions. It does not itself reduce the share count or guarantee that money will be spent: any effect on shares outstanding will depend on whether, and how many, shares the company ultimately repurchases.