Viemed Healthcare Inc VMD

VIEMED HEALTHCARE ANNOUNCES SHARE REPURCHASE PROGRAM

[donmayne]

VIEMED HEALTHCARE ANNOUNCES SHARE REPURCHASE PROGRAM

March 08, 2022

 

LAFAYETTE, La., March 08, 2022 (GLOBE NEWSWIRE) -- Viemed Healthcare, Inc. (the “Company” or “Viemed”) (NASDAQ:VMD and TSX:VMD.TO), a home medical equipment supplier and the nation’s largest independent provider of ventilation that provides post-acute respiratory care services, today reported that its Board of Directors has authorized and approved a share repurchase program on Nasdaq.

Under the share repurchase program, Viemed may repurchase up to 1,984,014 common shares of the Company (the ‎‎“Common Shares”) from time to time in accordance with applicable securities laws, ‎representing approximately 5% of the total issued and outstanding Common Shares as of March ‎4‎, 2022.‎

The Company intends to repurchase Common Shares through open market purchases, block purchases or otherwise in accordance with applicable securities laws. Subject to certain exceptions for block purchases, daily purchases on Nasdaq will be limited to 25% of the average daily trading volume on Nasdaq for the four calendar weeks preceding the date of purchase.

“Based on the strength of our balance sheet and excess free cash flow, we believe we are well positioned to execute on this attractive opportunity to increase shareholder value while maintaining resources to fund our operations and continued growth,” said Casey Hoyt, Viemed CEO. “This program demonstrates our confidence in the Viemed business and our commitment to creating long term sustainable value for our shareholders.”

All Common Shares will be purchased through the facilities of Nasdaq, and payment for the Common Shares will be in accordance with applicable securities laws. The price paid for the Common Shares will be the market price at the time of purchase, plus applicable brokerage fees, or such other prices as may be permitted by applicable securities laws. There can be no assurance as to the precise number of Common Shares that will be repurchased under ‎the program, if any. The Company may discontinue its purchases at any time, ‎subject to compliance with applicable securities laws.‎ The Common Shares purchased by the Company will be cancelled and returned to treasury.

 

[donmayne]

The limit on purchases is 25% of the daily volume for the past four weeks on Nasdaq.  This is currently about 32,000 shares per day. At the maximum rate, the repurchase program will last 60 days.   If daily volumes increase, so will the daily limit. Of course there is no guarantee they will make purchases, especially if the price gets too steep.

[donmayne]

The last share repurchase program of the company was announced on November 26, 2018.  It commenced on November 29, 2018, the Company was able to commence making purchases of up to a maximum of 1,875,575 common shares, which represented approximately 5% of the Company’s issued and outstanding common shares at the time. For the period ended December 31, 2018, the Company re-purchased and

[besttobe]

Nothing like desperate financial engineering to prop up a failing growth stock. Propably the ownly way they can prop up the flat EPS numbers which have been stagnant since 2018. 

[esifor]

I like a skeptical point of view to keep things in check and play devil's advocate but you should really stop crapping on things with irrational arguments. Share buy back is actually in the interest of the company due to its low share prices. That is equivalent to company investing in its own future instead of holding on to a bunch of cash. If management is confident they can grow, that's

[besttobe]

esifor wrote :"you should really stop crapping on things with irrational arguments. Share buy back is actually in the interest of the company due to its low share prices. Really..irrational ? haha Some Buyback Cons For years, it was thought that stock buybacks were an entirely positive thing for shareholders. However, there are some downsides to buybacks as well. One of the most

[esifor]

Thanks for posting all of the cons sections you could find on the net for stock buyback. Like any other capital decision, there are right times and wrong times for a stock buyback. My claim isn't that stock buy backs are great all around. I am saying that this is the right time for VieMed because the market is undervaluing its stock. I am sure when copy pasting you noticed the Pros sections of

[besttobe]

The buyback has done nothing to add  value to the company, nor addresses the fundemental issues. slow growth and stagnant earnings./market headwinds.  The reason the stock price tanked is due to fundemntal issues. Not being undervalued. The buy back does nothing to address that. It is worth what the market is willing to pay.  This bump will be short lived. Just sayin.... 

[beancounter11]

My only complaint on the buyback would be why did it take so long to put in place announce?  The stock has been undervalued for so long and they wait until an earning announcement so it gets lost in the news feed.  Someone needs to alert management that they could have done this prior to the earnings release.

[marcoll]

  Cause they want to get them as cheap as possible. This jump has now created a small gap that will need to get filled. Marc  

[figtrader]

Finally.  They were in dire need to buy back shares with all that cash on the books. They were actually lucky they didn't get bought out with so much of the value of the company in cash.

[LongTerm3]

The stock hit a 52 week low yesterday. They may of said this was the best time becaause earnings came out. If they did the buyback a few weeks ago they would of paid a higher price. Be happy.

[JackLambert]

Someone educate me.   Do these repurchased shares go into treasury so they can be reissued without a prospectus? Like the NCIB ?  Or are they cancelled?  

[LongTerm3]

From the press release: "The Common Shares purchased by the Company will be cancelled and returned to treasury."

[JackLambert]

If they are cancelled why return them to treasury?    The nice thing about the NCIB was they could be reissued without any fuss.   just axin'. 

[LongTerm3]

I guess that is what is legally done. It's probably best for the sharholders.