Contura Energy, Inc. has announced that its Board of Directors has approved a stock repurchase plan to acquire up to US$100 million in the aggregate of the company's common stock at prices as set forth in such plan over a specified period, in accordance with the guidelines specified in Rule 10b-18 and Rule 10b5-1 of the Securities Exchange Act of 1934.
"Based on our confidence in Contura's robust asset portfolio and strong position in both domestic and international markets, our board believes that the company's stock is significantly undervalued at current trading prices," said Chairman and CEO, David Stetson. "We have heard our shareholders loud and clear, and are executing this stock buyback as a first step in the previously announced strategic capital allocation programme focused on enhancing shareholder value."
The company repurchase plan is designed to allow the company to repurchase its common stock at times when it otherwise might be prevented from doing so under insider trading laws. Once the company repurchase plan is established, a designated agent will repurchase shares of common stock on the company’s behalf, without the company's further input, when the market price/share and other conditions specified in the plan are met. The agent will increase the volume of purchases made in the event the price of the company's common stock declines, subject to volume restrictions. No assurance can be given that any particular amount of common stock will be repurchased, or when.
Contura will designate an agent to facilitate the repurchases of the company's common stock on Contura's behalf, pursuant to the terms set forth in the Company Repurchase Plan and all applicable laws and regulations, including Rule 10b-18 and Rule 10b5-1, and Regulation M, which may prohibit purchases under certain circumstances.
Read the article online at: https://www.worldcoal.com/power/30082019/contura-announces-us100-million-stock-repurchase-plan/