Nov 18 2009
Up to 5% of Outstanding Shares May be Repurchased
Optical Cable Corporation (Nasdaq GM: OCCF) ("OCC") today announced that the Company's Board of Directors has approved a plan to purchase and retire up to 325,848 shares of OCC's common stock, or 5% of the current shares outstanding. OCC anticipates that the purchases will be made during the next 12 to 24 months.
"The repurchase plan announced today highlights the Board of Director's continuing confidence in OCC's long-term prospects and our commitment to creating value for shareholders. OCC's strong balance sheet gives us the flexibility to simultaneously invest in our business and institute this repurchase plan while we continue to prudently pursue other growth opportunities," stated Neil Wilkin, President and CEO of Optical Cable Corporation.
OCC expects to purchase shares from time to time in open market transactions. The timing and the amount of any purchases will be determined by the Company's management based on its evaluation of market conditions, capital allocation alternatives, and other factors. The new share repurchase program does not require the Company to acquire any specific number of shares and may be modified, suspended, extended or terminated by the Company at any time without prior notice. OCC will execute purchases only during periods where the executive team and the Board of Directors are not aware of material inside information that would likely affect a seller's decision to sell. The share repurchase plan is designed to comply with U.S. securities laws, rules and safe harbors for purchases that do not constitute tender offers. These restrictions can lengthen the time it may take for OCC to acquire its shares under this repurchase plan.
As of November 16, 2009, Optical Cable had approximately 6.5 million common shares outstanding.
In October 2009, OCC completed the purchase and retirement of an aggregate of 300,100 common shares pursuant to a plan announced on March 26, 2007.