Retractable Technologies, Inc. Announces Buyback Plan and Payment of All Dividends
June 07 2021 - 12:45PM
Business Wire
Retractable Technologies, Inc. (NYSE American: RVP) announced
today that its Board of Directors has approved the adoption of a
repurchase plan (the “Plan”) for up to $10 million of its Common
Stock. Under the Plan, open market purchases of Retractable’s
Common Stock may commence June 18, 2021 and may continue until June
18, 2022 at the latest. The Plan is structured to comply with Rules
10b5-1 and 10b-18 under the Securities Exchange Act of 1934. The
Plan will be administered through an independent broker. The
purchases under the Plan are subject to Rule 10b-18 limitations as
well as certain price and market volume constraints specified in
the Plan. Notwithstanding the terms of the Plan, the exact number
of shares which may be purchased pursuant to the Plan is difficult
to predict.
Thomas J. Shaw, President and CEO of Retractable, states, “Our
management is embarking on purchasing the Company’s stock because -
thanks to the dedication of our shareholders and continued efforts
of our employees - the U.S. government has recognized (as has the
medical community) that our technology provides a significant
advantage in terms of eliminating waste of vital and costly
medications and helps prevent the unnecessary spread of infectious
diseases. Under these established circumstances, we believe that
the Company’s stock is significantly undervalued.”
The Board of Directors has also approved payment to its Class B
Convertible Preferred shareholders of all current dividends,
dividends in arrears, as well as dividends still owed to
shareholders who converted their preferred stock in the past. While
Retractable has made quarterly dividend payments to some of its
preferred shareholders, it has never paid dividends to its Series
III preferred shareholders or former Series IV or Series V
preferred shareholders, many of whom purchased such shares over
twenty years ago. The total amount authorized for dividends payable
is $5,056,945. Of this amount, $39,050 is payable to Series II
Class B Convertible Preferred shareholders, representing a dividend
amount of $0.25 per share and cover amounts in arrears from April
1, 2021 though the date of conversion or June 30, 2021, whichever
is applicable. The dividends will be paid on July 22, 2021 to
shareholders of record as of the close of business on July 12,
2021. To Series III Class B Convertible Preferred shareholders,
$4,086,704 will be paid, representing a dividend amount of $1.00
per share per year and cover amounts in arrears from the date of
purchase though the date of conversion or June 30, 2021, whichever
is applicable. To former Series IV Class B Convertible Preferred
shareholders, $101,475 will be paid, representing a dividend amount
of $1.00 per share per year and cover amounts in arrears from the
date of purchase though the date of conversion. To former Series V
Class B Convertible Preferred shareholders, $829,716 will be paid,
representing a dividend amount of $0.32 per share per year and
cover amounts in arrears from the date of purchase though the date
of conversion.
Thomas J. Shaw, President and CEO of Retractable, states, “On
behalf of the Company, we would like to thank the shareholders for
their patience and dedication to our mission of providing safe
products for healthcare workers.”
For more information on Retractable, including information about
Common Stock repurchases scheduled to begin on June 18, 2021, visit
its website at www.retractable.com.
Forward-looking statements in this press release are made
pursuant to the safe harbor provision of the Private Securities
Litigation Reform Act of 1995 and reflect Retractable's current
views with respect to future events. Retractable believes that the
expectations reflected in such forward-looking statements are
accurate. However, Retractable cannot assure you that such
expectations will materialize. Actual future performance could
differ materially from such statements.
Factors that could cause or contribute to such differences
include, but are not limited to: the impact of COVID-19 on all
facets of logistics and operations, as well as costs, Retractable’s
ability to complete capital improvements and ramp up domestic
production in response to government agreements, potential tariffs,
Retractable's ability to maintain liquidity; Retractable's
maintenance of patent protection; Retractable's ability to maintain
favorable third party manufacturing and supplier arrangements and
relationships; foreign trade risk; Retractable's ability to access
the market; production costs; the impact of larger market players
in providing devices to the safety market; and other risks and
uncertainties that are detailed from time to time in Retractable's
periodic reports filed with the U.S. Securities and Exchange
Commission.
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version on businesswire.com: https://www.businesswire.com/news/home/20210607005613/en/
Retractable Technologies, Inc. John W. Fort III, 888-806-2626 or
972-294-1010 Vice President and Chief Financial Officer
Retractable Technologies (AMEX:RVP)
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