- Kontrol Technologies Corp (OTCQB:KNRLF) announces a new Normal Course Issuer Bid to repurchase up to 5% of its outstanding shares.
- The buyback program is set to run from April 14, 2025, to April 14, 2026, through Cboe Canada and alternative Canadian trading systems.
- Kontrol's Board of Directors believes this move will enhance shareholder value and liquidity.
Kontrol Technologies Corp. (OTCQB:KNRLF) has unveiled plans to initiate a new Normal Course Issuer Bid (NCIB) with the goal of repurchasing its common shares through Cboe Canada and other alternative Canadian trading systems. This strategic plan has received approval from the company's board and Cboe Canada, and is slated to commence on April 14, 2025, continuing through to April 14, 2026.
Under the NCIB, Kontrol is authorized to acquire up to 2,757,858 common shares, constituting 5% of its issued and outstanding shares. Daily purchases will be capped at 29,688 shares, which accounts for 25% of the average daily trading volume. However, block trades exceeding this daily cap can occur once per week. All acquired shares will subsequently be cancelled, with Ventum Financial Corporation executing the purchases on behalf of Kontrol.
The board's decision to pursue this buyback stems from a belief that Kontrol's current market price does not fully reflect its fundamental value and growth prospects. They view the share repurchase as a prudent allocation of corporate funds, expected to bolster shareholder value and market liquidity.
