Natural Health Trends Corp. has entered into an agreement to repurchase all of its shares of common stock beneficially owned by the George K. Broady family. Previously, the George K. Broady 2012 Irrevocable Trust and the Eleanor Jane Broady 2012 Irrevocable Trust collectively held almost 3 million shares of the company’s stock, or 25.5% of its outstanding shares.
With the repurchase of these shares for an aggregate purchase price of approximately $5.9 million, or $2 per share, the company stated it was able to “efficiently retire a large block of shares in a single, orderly transaction at an attractive price, addressing the perceived stock overhang and significantly reducing [its] shares outstanding.
The repurchase was effected pursuant to the company’s previously announced $70 million share repurchase program. Following this transaction, the company stated it expects to have approximately $16 million remaining available for future repurchases. As a result, it now expects annual dividend requirements will decline by approximately $1.2 million.
“The shares being repurchased were not part of the public float, and given their size relative to our trading volume, an open market sale likely would have required a prolonged period of time and could have been disruptive,” said Chris Sharng, Natural Health Trends Corp. President. “This transaction provides certainty and preserves liquidity while enhancing value for all remaining stockholders. We remain committed to financial discipline focusing on growing our free cash flow, maintaining a healthy balance sheet and returning cash to shareholders through our dividend program. We value the long-standing relationship with Mr. Broady and his family and appreciate their support of the company over many years. I am grateful to Mr. Broady for his friendship, advice and support and deeply appreciate his unwavering faith in our company, our products and our members. We wish them the best in their future endeavors.”
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