The company will purchase up to 2,731,462 of its common shares, representing approximately 5% of its issued and outstanding common shares.
A normal course issuer bid (NCIB) is expected to commence immediately on Nov. 1, the company said in a statement, noting that it believes the current market price of its shares does not fully reflect the underlying value of the company’s business and future prospects.
The share repurchase for cancellation “represents an appropriate use of the company’s financial resources and will enhance shareholder value,” SOL said in the statement.
The NCIB is expected to terminate on Nov. 1, 2020. Shares under the NCIB will be purchased on the open market.
On Friday, SOL share on the CSE closed up 15%. The stock, however, has plunged more than 60% since the start of this year.