Share Buy-Back Programs
Buybacks are really popular right now, and as things turned out, share repurchase programs have become a major part of how companies spend their cash. Stock buybacks occur when companies repurchase shares of their own stock. That leaves remaining shareholders with a bigger chunk of the company and increases the earnings they reap per share.
Corporate stock buybacks have been booming during 2018, thanks to the Republican tax cuts that significantly lowered tax rates on corporations. American businesses began sharing their billions of dollars in tax cut savings with their workers and the broader economy as it was intended by the Republicans in Congress, however, research has shown that within a few months Companies have boosted dividends and stock buybacks to an even greater extent. Thus, shareholders became the greatest winners.
Privately Negotiated Repurchase Programs
Share repurchase (or stock buyback) is the re-acquisition by a company of its own stock, as through purchases made in unsolicited privately negotiated transactions that are funded from available cash on hand or structured as part of a contemplated financing with an institutional investor. A privately-negotiated share repurchase is another means for a company to repurchase its shares. Rather than repurchase its shares on an exchange or in the over-the-counter market (i.e, an open market repurchase), a company may decide to enter into share purchase agreements with individual shareholders.
To NAEG, this may represent a more flexible and desirable way, at an appropriate time, of returning money to its long-term stockholders since the Company’s common stock has not been trading on the open-market since September 2017. Therefore, Management in conjunction with its financial operations, has determined that such a share repurchase program should be considered as they realize that people’s financial needs and circumstances change over time. Although the Company is actively engaged in the process of re-listing its common stock on a trading market, there may be a genuine need on the part of any number of individual stockholders, and we recognize that and want to determine viable ways to address it.
There are several reasons why a company would initiate such a program:
Therefore, a company would repurchase a significant portion of its outstanding shares by means of privately negotiated transactions and retire such repurchased shares back into the company’s Treasury. However, before its board of directors (in this example) could formally resolve to go ahead with such a share repurchase program, it must deliberate many factors including but not limited to; timing, form and amount of the share repurchase commitment by the Company. In addition, market conditions, legal requirements and other factors would be evaluated prior to implementation.
The Company is affording our stockholders the opportunity to decide and let us know, individually, if they would be interested in participating in such a share buy-back scenario such as described above, at a privately negotiated price. As part of this initiative and to survey stockholder interest, NAEG has provided a Survey Form that we invite interested parties to complete on-line for electronic submission. The Company will then compile these responses, creating a demand curve for evaluation as an initial step.
If the above link is not accessible by your internet browser, kindly copy and paste the following link into your website address browser: http://www.nativeamericanenergy.com/investors/buybacks-repurchases/survey-form/
Non-Solicitation:
The information set forth above does not constitute an offer to sell or the solicitation of an offer to buy any of the Company’s securities.
Disclaimer:
The information contained in this section of our NAEG website as of the current date is general in nature and is not intended to have specific applicability to any offer to sell or any offer to buy any securities at this time. If desired, you should seek your own professional advice on the matters addressed based on your own particular circumstances. Consequently, no liability shall be accepted by us in respect of the content of this page.
