Liberty Defense's Strategic Buyback: Enhancing Shareholder Value
Liberty Defense Initiates Significant Share Buyback Program
Liberty Defense Holdings Ltd. (“Liberty” or the “Company”) (TSXV: SCAN, OTCQB: LDDFF, FSE: E30) is excited to announce the commencement of a normal course issuer bid (the “NCIB”) to repurchase up to 5,142,844 of its outstanding common shares. This move represents nearly 10% of the public float as assessed on May 30, 2025, where 51,976,722 shares were issued, and only a fraction were owned by insiders. This reflects the Company's proactive bid to enhance shareholder value in a fluctuating market.
Details about the Buyback Program
The NCIB is set to officially begin on June 5, 2025, and will extend until June 4, 2026, although it may be completed earlier at the company’s discretion. Notably, the company will limit purchases to a maximum of 2% of its total shares in any 30-day period, ensuring that the buyback is executed responsibly. Importantly, all shares purchased during this period will be returned to the treasury and subsequently canceled, reducing the total share count and potentially increasing the value of remaining shares.
Rationale Behind the Buyback
Liberty’s board believes that, at times, the market price of its shares does not accurately reflect the intrinsic value of the company. By repurchasing shares, Liberty intends to signal confidence in its future prospects and use capital efficiently, particularly given the dynamics of the current market.
Engagement with Research Capital Corporation
To facilitate this buyback, Liberty has appointed Research Capital Corporation as its broker. This partnership aims to ensure that the share repurchase is conducted with transparency and compliance with the regulations set forth by the TSX Venture Exchange.
Company Overview
Liberty Defense specializes in AI-based detection solutions designed for concealed weapons and threats, making it a vital player in the security sector. Their innovative product, HEXWAVE, is distinguished by a licensing agreement with the prestigious Massachusetts Institute of Technology (MIT), which allows the company to utilize cutting-edge technology in active 3D radar imaging. Recently, Liberty has expanded its technology range to include advanced imaging technologies that enhance security in high-foot-traffic locations like airports and stadiums.
Technology Commitment
The company’s commitment to advancing security measures reflects its mission to protect communities and enhance safety. With the increasing global emphasis on security, Liberty’s technological solutions are timely and essential.
Future Directions for Liberty Defense
Liberty Defense looks forward not only to executing the NCIB successfully but also to continued innovation in the security technology landscape. As they implement these strategies, their focus remains on scalability and adaptability to meet evolving security challenges effectively.
Frequently Asked Questions
What is the purpose of Liberty Defense’s buyback program?
The buyback program aims to enhance shareholder value by repurchasing shares that may be undervalued in the market, signaling confidence in the company’s future performance.
When does the buyback program start and end?
The buyback program is set to commence on June 5, 2025, and will run until June 4, 2026, with the possibility of early completion based on company discretion.
How many shares can Liberty Defense buy back at a time?
The company can purchase a maximum of 2% of its issued shares within any 30-day window as part of the NCIB.
What is HEXWAVE, and how does it relate to Liberty's operations?
HEXWAVE is an advanced detection technology licensed from MIT, allowing Liberty to offer innovative solutions for concealing weapons in high-traffic areas.
Who is handling the share repurchase transactions?
Research Capital Corporation has been engaged as the broker to oversee the repurchase of shares under the NCIB.
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