The board of directors for China Marine Food Group Ltd. (OTCBB: CMFO) announced on Oct. 1 that the company has set up a $3-million stock repurchasing program through March 31, 2010.
The amount and timing of specific repurchases are subject to market conditions, legal requirements and other factors deemed appropriate by the CEO and president, Pengfei Liu. Any repurchased shares will be retired to reduce the number of outstanding common stock, currently at 23 million shares.
“Repurchases may be in open-market transactions or through privately negotiated transactions, and the repurchase program may be expanded by the board of directors in the future,” a company news release states. With the buyback, the company has a “sufficient cash balance” to complete phases one and two of its plant expansion, set to begin in 2009.
“After careful consideration and evaluating a number of suitable investment opportunities, we believe an investment in our company has the potential to yield a significant return for our shareholders,” said Liu. “We currently maintain a strong balance sheet, with approximately $29 million in net cash and equivalents as of June 30, 2008, and are also cash flow positive from operations.”
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