DeFi Technologies Initiates a Normal Course Issuer Bid to Enhance Value
DeFi Technologies Launches Normal Course Issuer Bid
DeFi Technologies Inc. (the "Company" or "DeFi Technologies") (Nasdaq: DEFT), a leader in financial technology that connects traditional capital markets with decentralized finance, announced a significant step in optimizing shareholder value through a Normal Course Issuer Bid ("NCIB"). This initiative allows the Company to repurchase its own common shares to potentially enhance shareholder value.
Rationale Behind the Share Buyback
The decision to initiate the NCIB arises from the management's observation that the market price of the Company's shares may not appropriately reflect its true business value and future prospects. By strategically buying back shares, the management believes it can align the market price with the underlying intrinsic value, providing a beneficial outcome for its shareholders. The Company currently holds approximately US$19.8 million in cash, which it plans to utilize for this buyback program.
Approval and Execution of NCIB
The NCIB has received formal approval from the board of directors and is accepted by Cboe Canada. This buyback initiative is scheduled to commence shortly and is subject to applicable rules and policies governing trading on the Cboe Canada and relevant Canadian securities regulations. The NCIB will begin soon and is expected to run for one year or until the planned number of shares has been repurchased.
Details of the Buyback Program
Under the NCIB's terms, DeFi Technologies can purchase up to 10% of its public float as outlined in the plan. This translates to approximately 31,673,791 Common Shares, which will all be permanently canceled following the purchases. The pricing at which shares will be acquired will be determined according to the prevailing market rates, ensuring transparency and fairness in the process.
Market Transaction Strategy
The Company plans to execute its purchases through the Nasdaq, Cboe Canada, and alternative trading platforms. There are also specific restrictions in place on the number of shares that may be bought on a daily basis, which cannot exceed 25% of the average daily trading volume during the specified evaluation period.
Coordination of the Program
To facilitate the efficient execution of the NCIB, DeFi Technologies has partnered with Ventum Financial Corp. This collaboration aims to ensure the buyback process runs smoothly, aligning with the Company's strategic objectives while also responding effectively to market dynamics.
Understanding DeFi Technologies
DeFi Technologies Inc. (Nasdaq: DEFT) operates at the frontier of financial technology. As a premier digital asset manager, the Company delivers diverse investment opportunities through its innovative and adaptable business model. This incorporates several key subsidiaries that offer specialized services across various sectors of decentralized finance, solidifying the Company's role as a crucial player in this evolving landscape.
Valour's Role in the Ecosystem
Among its subsidiaries, Valour stands out by providing exchange-traded products (ETPs) to secure access to digital assets for both retail and institutional investors. By simplifying the process and enhancing security, Valour supports the broader adoption of digital finance.
Additional Subsidiaries and Services
Stillman Digital, another subsidiary, specializes in providing liquidity solutions while maintaining industry-leading standards in trade execution and settlement. This integrated approach positions DeFi Technologies to effectively serve its customers and adapt to the rapidly changing market landscape.
Commitment to Transparency and Excellence
As the Company forges ahead, it remains committed to transparency and operational excellence. The strategic NCIB decision underscores its dedication to maximizing shareholder value and demonstrates its confidence in the future of decentralized finance. Investors and stakeholders can look forward to ongoing developments as the Company executes its initiatives and continues to innovate within this space.
Frequently Asked Questions
What is a Normal Course Issuer Bid (NCIB)?
An NCIB is a program where a company can buy back its own shares from the open market, helping to manage shares and improve shareholder value.
Why is DeFi Technologies initiating an NCIB?
The company believes the current market price does not reflect its true business value and aims to enhance shareholder returns.
How will the share buyback be executed?
The buyback will be conducted through market transactions on Nasdaq and Cboe Canada, following specific regulatory rules.
What will happen to the shares purchased back?
All shares repurchased through the NCIB will be canceled, reducing the outstanding share count and potentially increasing value for remaining shareholders.
When is the NCIB expected to commence?
The NCIB is set to commence shortly and will run for one year, or until the targeted number of shares has been acquired.
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