Shoals Technologies Group, Inc. (NASDAQ: SHLS) shares bounced in the first hour of trade Tuesday. The Portland, Tenn.-based company, a leading provider of electrical balance of system solutions for the energy transition market, today announced that its Board of Directors has authorized the repurchase of up to $150 million of the Company’s Class A common stock. The authorization is effective through December 31, 2025 and allows for repurchases to be made in the open market, privately-negotiated transactions, accelerated share repurchases or otherwise in accordance with applicable federal securities laws, including through Rule 10b5-1 trading plans and under Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Shoals anticipates that share repurchases made pursuant to the authorization will be funded through cash on hand, free cash flow and borrowings under the Company’s credit facilities.
“We believe the share repurchase program can create value for our shareholders and underscores the confidence that the board and management have in Shoals’ business and long-term growth potential,” commented Brandon Moss, Shoals’ Chief Executive Officer.
Under the terms of the ASR, Shoals will receive an initial delivery of approximately 2,202,643 shares of Class A common stock, representing approximately 60% of the notional amount of the ASR, based on the closing price of $6.81 on June 10, 2024.
SHLS shares hiked 76 cents, or 11.2%, to $7.57.
