Optical Cable Announces Plan to Repurchase 320K Shares, 4.9% of Currently Outstanding Shares
Optical Cable Corporation (Nasdaq: OCC) today announced that the Company's Board of Directors has approved a plan to purchase and retire up to 320,000 shares of OCC's common stock, or approximately 4.9% of the current shares outstanding. OCC anticipates that the purchases will be made during the next 12 to 24 months.
Neil Wilkin, President and Chief Executive Officer of OCC, said "The share repurchase plan announced today demonstrates the confidence of the Board of Directors in OCC's strategy and long-term prospects. OCC has delivered strong earnings performance, as sales of our fiber optic cable products are driving top-line growth and we continue to control costs. In addition, we continue to maintain a strong balance sheet, which combined with our sales and earnings performance, provides us with the flexibility to implement this share repurchase plan while simultaneously delivering value to shareholders through a regular quarterly dividend."
The new share repurchase program does not require the Company to acquire any specific number of shares and may be suspended, extended or terminated by the Company at any time without prior notice. According to the terms of the share repurchase program, purchases will only be made during periods in which the executive team and the Board of Directors are not aware of material inside information that would likely affect a seller's decision to sell. The share repurchase plan is designed to comply with U.S. securities laws, rules and safe harbors for purchases that do not constitute tender offers. These restrictions can lengthen the time it may take for OCC to acquire its shares under this repurchase plan.
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