Tucker, Ga. - SED International Holdings today announced that its board of directors has approved a stock repurchase plan in which SED may buy back up to $50,000 worth of its outstanding shares of common stock in the open market over the next six months.
"The decision to repurchase SED International Holdings' shares underscores the board's confidence in SED's long-term growth potential," commented Jean Diamond, SED's chairman/CEO. "We believe our shares are undervalued at current levels, making a stock buy-back an attractive investment opportunity that will benefit the company as well as our shareholders committed to us over the long term."
The repurchase program's terms have been structured to comply with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The repurchase program does not obligate SED to acquire any specific number of shares and may be suspended or terminated at any time, SED said.
The repurchase program will be funded using SED's working capital. Repurchased shares will be retired and restored to the status of authorized and unissued shares, thereby increasing the percentage ownership of all existing shareholders.
As of Aug. 18, the closing price per share of SED's common stock was $1.28.