Kontrol Technologies (CSE: KNR) last night announced that it intends to conduct a normal course issuer bid, also known as share buybacks. The program will see the company repurchase up to 2.1 million shares of its common stock, or roughly 5% of its currently outstanding shares.
With 41.2 million shares currently outstanding, the company is limited to purchasing up to 69,500 common shares per day under the share buyback program. This figure amounts to 25% of the average trading volume of the equity over the last 12 months.
Purchases under the program are eligible to begin today, and end on the earlier of March 25, 2022, or the date on which the full amount approved for repurchase is fulfilled. The program is being pursued due to the firms board of directors effectively viewing the company as undervalued.
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Historically, the company was previously approved for a share buyback program that ended in July 2020. While approved for the repurchase of 1.5 million shares under that program, over the course of the full year the company repurchased just 30,500 shares.
Kontrol Technologies last traded at $2.96 on the CSE.
Information for this briefing was found via Sedar and Kontrol Energy Systems. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
