Seanergy Maritime Holdings Corp (NASDAQ:SHIP) Stock Gains Momentum: What Next?
Pure-play Capesize ship-owner publicly listed in the US, Seanergy Maritime Holdings Corp (NASDAQ:SHIP), on August 11, 2021, announced the authorization of share repurchase plan by the Board of Directors. The firm will be able to repurchase $17 million of outstanding common shares, which is about 10% of its market capitalization on August 10, 2021.
Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer said that the firm believes in sharing price and market value of the firm being significantly undervalued both in terms of equity as well as underlying assets.
Tsantanis added that the firm has a robust ability on generating earnings in the present market environment and hence the share buyback is an apt and well-timed capital allocation decision.
He added that the firm will be harnessing its robust balance sheet as well as a cash flow to lower the number of outstanding common shares and as a result augment stockholder value.
The firm can repurchase common shares in open-market transactions pursuant to Rule 10b-18 of the Securities Exchange Act of 1934.
The repurchases will be subject to management’s discretion on attractive pricing as well as the interests of both company and its shareholders. This can be terminated, suspended, or modified any time for any reason and various factors may impact timing as well as the number of share repurchases.
