NEW YORK - DocGo Inc. (NASDAQ: DCGO), a provider of mobile health services, has initiated a new stock repurchase program, as confirmed by the company's Board of Directors. The program authorizes the repurchase of up to $36M of its common stock over a six-month period, concluding on July 30, 2024.
This buyback plan follows the expiration of the previous authorization on November 24, 2023. The amount approved corresponds to roughly 10% of the company's outstanding shares, based on the current share price at the time of the authorization. However, the actual number of shares repurchased will depend on market conditions and share price at the time of purchase.
Lee Bienstock, CEO of DocGo, expressed confidence in the company's performance and future potential, citing the share price decline as not indicative of the company's value. He stated that the repurchase is seen as a strategic use of capital to enhance shareholder value.
DocGo may carry out the repurchase through open market transactions, private negotiations, or other methods such as Rule 10b5-1 trading plans or accelerated share repurchase programs, provided it is not in possession of material non-public information.
The company's CFO, Norm Rosenberg, indicated that the buyback is set to begin after the current blackout period ends in early March, subject to market conditions. Rosenberg emphasized the commitment to aggressively monitor and evaluate opportunities to deliver long-term shareholder value.
The timing and volume of shares repurchased will be influenced by several factors, including stock price, trading volume, and other business considerations. The program may be altered, paused, or terminated without prior notification.
Funding for the repurchase may come from DocGo's available cash, future cash flow, or debt financing options.
The information disclosed here is based on a press release statement from DocGo Inc.
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