Ardmore Shipping Corporation (ASC) on Tuesday announced authorization of a new Share Repurchase Plan by its Board of Directors replacing and expanding its earlier similar plan.
With the approval of new plan, Ardmore may possibly spend an amount of up to $30 million to reacquire company’s common shares. The option of exercising that repurchase will be remain for next three years that will end on September 30, 2023. The company will make repurchase as and when the timing or price of the stock seems suitable to the company.
3 Tiny Stocks Primed to Explode
The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.
We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.
Click here for full details and to join for free
Sponsored
ASC is expecting making those shares repurchase through acquisition of the same from the open market or negotiating transactions with investors for private-held stock. As per terms of the plan, it is not obligatory for the company to repurchase shares. Those terms also allow the company to delay, suspend or terminate the repurchase plan at any time.
The news of repurchase plan resulted in an increase of 6.31% to the stock price on the day. That bring the company’s current weekly performance in the green while its monthly, quarterly, half and full year performance are still in the red zone.
The company in June gets an unsolicited all-stock acquisition proposal from Hafnia Limited to acquire all of the outstanding shares of Ardmore. In its offer, Hafnia offered 2.4 shares of its common stock in exchange for each share of Ardmore.
Board of Director at Ardmore unanimously rejected the proposal after thorough evaluation of the proposal and consultation with independent financial and legal advisors. Ardmore’s Board determined the Hafnia’s proposal as highly unprincipled, significantly underestimating Ardmore’s current worth and its future projections, and found it baseless to be engaged in discussion with Hafnia on the proposal.
The proposed exchange ratio implied and the volume weighted average share price offered by Hafnia in its proposal was also not acceptable to the Ardmore’s Board.
