LITTLETON, Colo. - CPI Card Group Inc . (NASDAQ:PMTS (TSX:PMTS)), a provider of payment technology solutions, announced a new agreement to continue its share repurchase program with Tricor Pacific Capital Partners (Fund IV) US, LP, managed by Parallel49 Equity ULC. This second agreement, starting April 1, 2024, follows the nearing completion of an initial repurchase agreement set to expire on March 31, 2024.
Under the terms of the new agreement, CPI Card Group will buy shares from Parallel49 in a quantity triple that of its open market acquisitions from other shareholders during the April to June 2024 period, with a cap of 325,000 shares. The repurchase price will be 98% of the volume-weighted average price of the open market purchases in the same timeframe, with settlements to occur within five days after the period ends.
The company's Audit Committee has approved the transaction, which is part of a broader $20 million share repurchase authorization. CPI Card Group will also settle purchases made under the initial agreement shortly after March 31. As of the end of 2023, Parallel49 owned approximately 57% of CPI's outstanding shares, amounting to 6.6 million shares. The 3-to-1 repurchase ratio is designed to either maintain or reduce Parallel49's ownership percentage while minimizing the impact on CPI's public float.
CPI Card Group's existing share repurchase authorization permits the company to buy back up to $20 million of its common stock through open market or privately negotiated transactions until December 31, 2024. Future agreements similar to the current ones with Parallel49 may be considered within the scope of this authorization.
CPI Card Group specializes in a wide array of credit, debit, and prepaid card products, including Software-as-a-Service (SaaS) instant issuance. The company has been recognized as one of the 2024 Best Companies to Work For by U.S. News and World Report, underscoring its commitment to the payments industry and customer satisfaction.
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