Zhongpin: Stock Repurchase Program of up to $10 million
Zhongpin Inc. announced that its board of directors has approved a stock repurchase program of up to $10 million of its outstanding stock over the next 12 months. The stock repurchase program was approved by Zhongpin’s board of directors on July 5, 2011, became effective on July 5, 2011, and is authorized to be in effect through July 4, 2012.
Mr. Xianfu Zhu, Zhongpin’s Chairman and Chief Executive Officer, said, “Our board of directors approved this share repurchase program to demonstrate its confidence in the long-term growth outlook for Zhongpin and its desire to create value for our shareholders. Our good cash position gives us the flexibility both to continue our aggressive growth strategy and to buy our shares through the stock repurchase plan.”
Under the stock repurchase program, Zhongpin is authorized to repurchase up to $10 million of its issued and outstanding common shares from time to time in open-market transactions on Nasdaq at prevailing market prices, in negotiated transactions off the market, in block trades, in trades pursuant to a Rule 10b5-1 repurchase plan that allows Zhongpin to repurchase its shares during periods in which it may be in possession of material non-public information, or otherwise, in accordance with applicable federal securities laws, including Rule 10b-18.
The repurchases will be made at management’s discretion, subject to restrictions on price, volume, and timing. The timing and extent of any purchases will depend upon market conditions, the trading price of its shares, and other factors. The repurchase program does not obligate Zhongpin to make repurchases at any specific time or situation.
Zhongpin’s board of directors will periodically review the share repurchase program and may authorize adjustments to the program’s terms and size. The board may also suspend or discontinue the repurchase program at any time.
Zhongpin expects to pay for the repurchased shares using internally available cash. As of March 31, 2011, Zhongpin’s cash and cash equivalents totaled $177.6 million.
Zhongpin had 40.3 million common shares outstanding as of March 31, 2011.
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