Mining giant will spend up to $10 million to buy back its shares

Mining giant will spend up to $10 million to buy back its shares

The buyback will begin on September 22 — during the year, will buy back Depositary receipts that are traded on the NASDAQ stock exchange.

Beijing-based mining equipment manufacturer Creative plans to spend up to $10 million to buy back its shares. The announcement released today says that the proposal has already received support from the company’s Board of Directors.

Read Bloomchain via your favorite social networks: Telegram, VK, FB repurchase program assumes that the company will repurchase American Depositary receipts (ADRs) for up to $10 million over the course of the year. Each ADR confirms ownership of 15 class a common shares. Bybacks are scheduled to start on September 22.

The number of ADRs purchased and the final term of the program will depend on several factors, including the value of the securities, trading volume, equity requirements, and “General market conditions” and “General business conditions”.

Recall that Creative became the first representative of the “big four” mining companies that managed to conduct an IPO — in November last year, its shares were listed on the NASDAQ stock exchange. Note that the IPO was held only on the third attempt — before that, the company failed on the Shenzhen and Hong Kong exchanges.

Read also: mining business has not grown to public capital initially expected to raise $400 million, but after the loss of a key underwriter — the investment Bank Credit Suisse — expectations from the IPO were reduced four times. As a result of the placement, almost reached its goal — the company raised almost $90 million. On the day of listing, its securities rose from the initial $9 to $13, but four days later their value went down. securities are currently trading at $1.94. over the past six months, they have fallen by almost 55%, and since the IPO, the shares have lost more than 76% of their value. Therefore, we can assume that the buyback program is not related to the company’s excess cash, but to the need to prevent a further drop in its market value. Creative shares are listed on the NASDAQ stock exchange. Source: TradingView
Last week, published a report showing that the company’s revenue increased significantly in the second quarter of 2020, but it still remains unprofitable. The equipment manufacturer’s net loss reached $2.38 million on revenue of $25.2 million.