Shoals Technologies Group, Inc. (SHLS) announced on Tuesday that it has received authorization to repurchase up to $150 million worth of its Class A shares, with this authorization effective until December 31, 2025.
Dominic Bardos, Chief Financial Officer of Shoals, commented, "This buyback program is a key component of our value creation strategy. We will continually assess all potential uses for our cash flow, including investment in new technology, strategic acquisitions, debt reduction, and share repurchases."
To initiate this buyback, the company has engaged in an accelerated share repurchase (ASR) agreement with Jefferies LLC to repurchase $25 million of its Class A shares. As per the ASR terms, Shoals will initially receive approximately 2.202 million Class A shares, which equates to around 60 percent of the total ASR amount, based on the closing price of $6.81 on June 10, 2024.
The ASR transaction is expected to be concluded by the third quarter of 2024. Shoals plans to finance the repurchases using its available cash, free cash flow, and borrowings under the company’s existing credit facilities.
In pre-market trading on Nasdaq, SHLS shares were up 7.34 percent at $7.31 per share.
