Novo Integrated Sciences (NASDAQ: NVOS) stock more than doubled on Friday amid plans to expand its stock buyback program.
Novo Integrated Sciences is contemplating its current stock repurchase program expansion, potentially surpassing the initially approved $5 million allocation.
The healthcare company announced on Friday that its board of directors is undertaking a strategic evaluation to assess the feasibility of increasing the maximum amount of stocks they can repurchase under its existing stock repurchase program. This decision hinges on the possibility of generating surplus funds from a recently revealed scheme aimed at monetizing a Standby Letter of Credit, intended to facilitate the completion of the Ophir Collection acquisition.
The timing and extent of any share repurchases under the Stock Repurchase Program are contingent upon the reception of funds from an unsecured 15-year $70 million promissory note with RC Consulting Consortium Group, LLC. This funding arrangement, in favor of SCP Tourbillion Monaco, seeks to secure a lump sum debt funding of $57 million after deducting fees and expenses. The discretion to repurchase shares will lie with the management, influenced by various factors including the market price of the Company’s stock, trading volume, general market and economic conditions, the Company’s capital position, legal requirements, and other pertinent considerations.
Novo Integrated Sciences (NASDAQ: NVOS) Stock Reaction
On Friday, NVOS stock surged 132.82%, closing at $1.05, marking a 130.06% increase for the week. The trading volume was 310,284,640 shares, significantly higher than the average daily volume of 5.87 million.
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