Snap Interactive has announced plans to repurchase up to $1m of its common stock over the next year.
The systematic repurchase plan, enabled under Rule 10b5-1 of the Securities and Exchange Act of 1934, will let SNAP purchase shares in open market transactions.
The company said the plan allows shares to be purchased during blackout periods imposed by SNAP’s insider trading policy “between quarter-end and the reporting of the Company’s financial results, as well as during open trading windows.”
Speaking about the repurchase plan, Jason Katz, SNAP’s Chairman of the Board of Directors said: “We believe at times the market equity value of the Company has not fairly represented the present value of our business and its future opportunities.
“We determined that a buyback program is an effective allocation of capital, permitting the Company to opportunistically repurchase shares at attractive prices. I believe the buyback program will deploy corporate resources in a way that increases shareholder value over time.”
The program has been approved for an initial period of one year, and purchases are expected to be funded with existing cash on hand.
Earlier this month, Snap posted strong first quarter results for 2017, announcing a total revenue increase of 36.1% to $6.7m, compared to the previous year.
The company is banking on its live video strategy to continue to push growth, having recently added microtransactions to video platforms and cross-selling FirstMet membership to users of Paltalk.
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