LONDON - Kooth PLC (AIM: KOO), a company specializing in digital mental health services for youth, announced today its plan to repurchase up to £1.5 million of its ordinary shares. The buyback aims to bolster the company's treasury shares to fulfill future obligations related to its long-term incentive plan and other share-based reward schemes.
The Board believes this action reflects the company's strong financial position and addresses what it considers to be a current undervaluation of its shares. The buyback is seen as a strategic move to reduce potential dilution from future share option exercises, aligning with the interests of all shareholders.
Kooth has appointed Stifel Nicolaus Europe Limited to manage the on-market purchases as a non-discretionary agreement, allowing Stifel to make independent trading decisions within specific parameters.
The repurchase authorization, which was approved at Kooth's 2024 Annual General Meeting, allows for the acquisition of a maximum of 3,651,455 ordinary shares. The buyback will comply with Market Abuse Regulation 596/2014 and the Commission Delegated Regulation (EU) 2016/1052, though Kooth may exceed the 25% average daily trading volume limit due to the limited liquidity in its shares.
The maximum price per share has been capped at either 105% of the average middle market quotations for the last five business days or the higher of the last independent trade and the highest current independent bid, with a floor price of £0.05 per ordinary share.
Market purchases under this program will be publicly announced by 7:30 a.m. on the following business day after any transactions occur.
This share buyback announcement is considered inside information under the UK Market Abuse Regulation, with CEO Tim Barker responsible for the dissemination of this press release statement.
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