CPI Card Group Announces Addl. Share Purchase Agreement With Parallel49

(RTTNews) - On Friday, CPI Card Group Inc. (PMTS) announced a new agreement with Tricor Pacific Capital Partners US, LP, managed by Parallel49 Equity ULC, to extend its shares repurchase program.

The agreement, part of the company's $20 million share repurchase authorization, covers April through June.

CPI Card Group will repurchase shares from Parallel49 at three times the rate of other shareholders, up to 325,000 shares, at 98 percent of the average market price. Settlements will occur within five days after each period.

Additionally, purchases under the previous agreement will be settled by March 31.

As of December 2023, Parallel49 held around 57 percent of CPI's outstanding shares. The 3-to-1 repurchase ratio aims to adjust Parallel49's ownership without significantly impacting CPI's public float.

The authorization allows CPI Card Group to repurchase up to $20 million of its common stock through 2024, including future agreements like the one with Parallel49.