Online lead generator for the iGaming industry Catena Media announced today its share buyback program would be paused in compliance with the requirements of the Maltese Companies Act (MCA) until the holding company has new distributable profits.
Share Buyback on Hold
The share buyback program that allowed Catena Media to expand its stake to 3.1% after two rounds of share repurchases will now cease temporarily as the company has no further distributable profits to use.
Catena repurchased a total of 2.32 million shares during the two rounds, the first of which took place between September 13 and October 15 and saw the company buy more than 1.5 million of its ordinary stock, while the second, from November 17 to December 3, added another 817,700.
The share buyback program that was initially approved by Catena shareholders at the annual general meeting (AGM) on July 14, 2021, and entitled the Board of Directors to executive stock repurchase on one or more occasions prior to the following AGM, commenced in the third quarter when the company’s directors decided to exercise the authorization granted to them by the shareholders.
With a total issued capital of 75.57 million shares and a cap of 10% of the total issued share capital of Catena’s holdings, the share buyback authorization limited the amount of stock for repurchase to just above 7 million ordinary shares.
Catena Media announced it repurchased ordinary stock for a total consideration of SEK132.5 million ($14.6 million) at a volume-weighted average price of SEK57.06 ($6.28) under the share buyback program, while future buybacks would continue to be “at the discretion of the Board of Directors.”
All share repurchases were executed on the Nasdaq Stockholm by Carnegie Investment Bank on behalf of Catena Media and in compliance with the MCA, EU Market Abuse Regulation, and the Rulebook for Issuers of Shares of Nasdaq’s Nordic Main Market.
At the time the share buyback program commenced in September, Catena’s stock on the Nasdaq Stockholm was changing hands at SEK48.50 ($5.62), and by the time of the program pause announcement, the price was slightly up to SEK49.6 ($5.74).
Exceptional North America-Driven Q3
In the third quarter, Catena Media posted 23% organic growth as revenue from operations in North America jumped by 124%, more than enough to offset headwinds in its European markets and showed the value of the company’s diversified global footprint.
As part of its expansion in the region, Catena Media acquired i15 Media and its more than 100 websites dedicated to sports betting, casino gaming, and affiliates in a cash plus stock deal for a total consideration of $45 million.