Catena Media has announced plans to initiate a $5.4m share buyback program after the Board of Directors authorized the initiative at an extraordinary general meeting.
Following an initial resolution at the annual general meeting on 24 May, the board ratified the final approval late last week, meaning that Catena can now start to buy shares back from stockholders.
Catena explained that “the purpose of the program is to deliver shareholder value and optimize the company’s capital structure by reducing its share capital”.
Running until the end of the calendar year, the program sees Catena buy shares from the Nasdaq Stockholm according to its Rule Book for Issuers.
Once completed, Catena’s corporate governance will cancel the repurchased shares acquired by the program.
Under the rules of the Nasdaq Stockholm, Catena must ensure that its shareholding does not exceed 10% of its total issued share capital. Consequently, the maximum number of shares that can be repurchased is 7,203,534.
Currently, Catena Media holds 0.8% of its own ordinary shares out of a total of 78,769,812 outstanding shares.
Share purchases will be within the price range recorded on Nasdaq Stockholm, and payment for shares will be made in cash.
This scheme is being managed by an investment firm or credit institution that will make its trading decisions. It also comes as the affiliate media publishing firm is conducting a strategic review of its long-term outlook, which could include a full sale of the business.
One certainty that came from the strategic review was that the North American sports betting and online casino markets pose the best investment case for Catena, therefore will take priority moving forward.
In Q4 ‘22, 78% of group turnover was sourced from North America and the region’s revenue grew by 31% YoY.
Catena will next report its financials for H1 of 2023 on August 22.