Kornit Digital Announces Board Authorization of $100 Million Share Repurchase Program

Rhea-AI Summary

Kornit Digital (Nasdaq: KRNT), a leader in sustainable, on-demand digital fashion and textile production technologies, has announced a $100 million share repurchase program authorized by its Board of Directors. This program, combined with $65 million in repurchases since 2023, demonstrates the Board's confidence in Kornit's strategy and long-term potential. The repurchase may be executed through various methods, including open market purchases and privately negotiated transactions, in compliance with U.S. securities laws. The program is flexible, allowing for suspension or discontinuation at the Company's discretion. Implementation will begin after a 30-day creditor objection period, with timing and volume dependent on market conditions, financial results, and other factors. Kornit plans to fund repurchases with existing cash reserves.

Positive

• Board authorization of $100 million share repurchase program
• Additional $65 million in share repurchases executed since 2023
• Demonstrates Board's confidence in company strategy and long-term potential
• Flexibility in repurchase methods and timing
• Potential to increase shareholder value through stock price support

Negative

• Potential reduction in cash reserves for future investments or operations
• 30-day delay for program implementation due to creditor objection period
• Repurchase program does not guarantee stock price appreciation

ROSH-HA`AYIN, Israel, Sept. 10, 2024 (GLOBE NEWSWIRE) -- Kornit Digital Ltd. (“Kornit” or the “Company”) (Nasdaq: KRNT), a worldwide market leader in sustainable, on-demand, digital fashion and textile production technologies, today announced that its Board of Directors has authorized a program to repurchase up to $100 million of the Company’s ordinary shares as part of its capital allocation strategy. This repurchase program, in addition to the $65 million of aggregate share repurchases executed by the Company since 2023, reflects the Board’s confidence in the Company’s strategy and long-term potential, while demonstrating ongoing commitment to driving value creation for its shareholders.

Under the Board authorized repurchase program, the Company’s ordinary shares may be repurchased from time to time using a variety of methods, which may include open market purchases, privately negotiated transactions or otherwise, all in accordance with U.S. securities laws and regulations, including Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company may also, from time to time, enter into plans that are compliant with Rule 10b5-1 of the Exchange Act to facilitate repurchases of its shares under this authorization. The repurchase program does not obligate the Company to acquire any particular amount of ordinary shares, and the repurchase program may be suspended or discontinued at any time at the Company's discretion. Repurchases under the repurchase program may begin after the conclusion of a 30-day period for creditors of the Company to object to the Company's intent to effect a deemed distribution by way of repurchase in accordance with the Israeli Companies Regulations (Relief for Public Companies Whose Securities are Traded on Stock Exchanges Outside of Israel), 5760-2000 and the Israeli Companies Regulations (Approval of Distribution), 5761–2001.  The actual timing, number, and value of shares to be repurchased will depend on a number of factors, including the market price of the Company's ordinary shares, general market and economic conditions, any objections received by the Company from its creditors, the Company's financial results and liquidity, and other considerations.  The Company expects to fund repurchases with cash on hand.

About Kornit Digital

Kornit Digital (NASDAQ: KRNT) is a worldwide market leader in sustainable, on-demand, digital fashion and textile production technologies. The Company offers end-to-end solutions including digital printing systems, inks, consumables, software, and fulfillment services through its global fulfillment network. Headquartered in Israel with offices in the USA, Europe, and Asia Pacific, Kornit Digital serves customers in more than 100 countries and states worldwide. To learn more about how Kornit Digital is boldly transforming the world of fashion and textiles, visit www.kornit.com.

Forward Looking Statements

Certain statements in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other U.S. securities laws. Forward-looking statements are characterized by the use of forward-looking terminology such as “will,” “expects,” “anticipates,” “believes,” “intends,” “planned,” or other similar words. These forward-looking statements include, but are not limited to, statements relating to the Company’s objectives, plans and strategies, including with respect to the Company’s authorized share repurchase program, statements regarding the Company’s results of operations and financial condition and all statements that address developments that the Company expects or anticipates will or may occur in the future. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. The Company has based these forward-looking statements on assumptions and assessments made by its management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include, among other things: potential objection to the share repurchase program by the Company’s creditors and/or failure to receive Israeli court approval after any such objection; the Company’s degree of success in developing, introducing and selling new or improved products and product enhancements including specifically the Company’s Poly Pro and Presto products, and the Company’s Apollo direct-to-garment platform; the extent of the Company’s ability to increase sales of its systems, ink and consumables; the development of the market for digital textile printing; and those additional factors referred to under “Risk Factors” in Item 3.D of the Company’s Annual Report on Form 20-F for the year ended December 31, 2023, filed with the SEC on March 28, 2024. Any forward-looking statements in this press release are made as of the date hereof, whether as a result of new information, future events or otherwise, except as required by law.

Investor Contact:                                              
Jared Maymon
Global Head of Investor Relations & Strategic Finance
Jared.Maymon@Kornit.com

FAQ

What is the size of Kornit Digital's new share repurchase program?

Kornit Digital's Board of Directors has authorized a $100 million share repurchase program.

How much has Kornit Digital (KRNT) spent on share repurchases since 2023?

Kornit Digital has executed $65 million in aggregate share repurchases since 2023, in addition to the newly announced $100 million program.

When will Kornit Digital's share repurchase program begin?

The repurchase program will begin after a 30-day period for creditors to object to the Company's intent to effect a deemed distribution by way of repurchase.

How will Kornit Digital fund the share repurchases?

Kornit Digital expects to fund the share repurchases with cash on hand.

Is Kornit Digital (KRNT) obligated to repurchase a specific amount of shares?

No, the repurchase program does not obligate Kornit Digital to acquire any particular amount of ordinary shares and can be suspended or discontinued at the Company's discretion.