Primech Holdings Announces Share Repurchase Program

Rhea-AI Summary

Primech Holdings (NASDAQ: PMEC), a Singapore-based technology-driven facility services provider, has announced a significant share repurchase program approved by its Board of Directors. The program authorizes the repurchase of up to 20% of the Company's outstanding Ordinary Shares under Rule 10b-18.

The buyback program requires shareholder approval at an upcoming Extraordinary General Meeting (EGM) and will remain effective until the next Annual General Meeting (AGM). The company plans to fund the repurchases using existing cash and cash equivalents, with purchases to be made through on-market transactions in compliance with securities laws.

CEO Kin Wai Ho emphasized the company's focus on innovation in facility services through AI, robotics, and sustainable solutions, stating that the buyback program reflects management's confidence in Primech's business strategy and growth potential.

Positive

• Authorization to repurchase up to 20% of outstanding shares, indicating significant potential for enhancing shareholder value
• Company plans to use existing cash and cash equivalents, demonstrating strong liquidity position
• Management's confidence in business strategy and growth potential

Negative

• Share repurchase program is subject to shareholder approval, creating uncertainty
• Program may be suspended or discontinued at any time, offering no guarantees
• Significant cash allocation to buybacks could limit funds available for operational growth and innovation

SINGAPORE, May 01, 2025 (GLOBE NEWSWIRE) -- Primech Holdings Limited (the “Company”) (Nasdaq: PMEC), an established technology-driven facility services provider in the public and private sectors operating mainly in Singapore, today announced that its Board of Directors has approved a Rule 10b-18 share repurchase program with authorization to purchase up to 20% of the Company's outstanding Ordinary Shares. The program is subject to shareholder approval at the upcoming Extraordinary General Meeting (EGM).

This program will be effective from the date when the shareholders’ approval is obtained, up to the next Annual General Meeting (AGM) is held or required by law to be held (whichever is earlier), unless earlier revoked, varied, or fully utilized.

"As we continue to drive innovation in facility services through AI, robotics, and sustainable solutions, we remain committed to prudent capital allocation focused on long-term growth opportunities," said Mr. Kin Wai Ho, Chief Executive Officer of Primech Holdings. "This share repurchase program reflects the Board's and Management's confidence in our business strategy and the future growth potential of Primech, as well as our commitment to enhancing shareholder value."

The Company may repurchase Ordinary Shares from time to time through on-market purchases in accordance with applicable securities laws and other restrictions. The timing and total amount of stock repurchases will depend on business, economic, market conditions, corporate, legal and regulatory requirements, prevailing stock prices, trading volume, and other considerations. The share repurchase program may be suspended or discontinued at any time and does not obligate the Company to acquire any amount of stock. The Company expects to utilize its existing cash and cash equivalents to fund any repurchases under the share repurchase program.

About Primech Holdings Limited

Headquartered in Singapore, Primech Holdings Limited is a leading provider of comprehensive technology-driven facilities services, predominantly serving both public and private sectors throughout Singapore. Primech Holdings offers an extensive range of services tailored to meet the complex demands of its diverse clientele. Services include advanced general facility maintenance services, specialized cleaning solutions such as marble polishing and facade cleaning, meticulous stewarding services, and targeted cleaning services for offices and homes. Known for its commitment to sustainability and cutting-edge technology, Primech Holdings integrates eco-friendly practices and smart technology solutions to enhance operational efficiency and client satisfaction. This strategic approach positions Primech Holdings as a leader in the industry and a proactive contributor to advancing industry standards and practices in Singapore and beyond. For more information, visit www.primechholdings.com.    

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements, including, for example, statements about completing the acquisition, anticipated revenues, growth, and expansion. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. These forward-looking statements are also based on assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. Investors can find many (but not all) of these statements by the use of words such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "likely to" or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure that such expectations will be correct. The Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC.

Company Contact:

Email: ir@primech.com.sg

Investor Relations Contact: 
       
Matthew Abenante, IRC
President                                        
Strategic Investor Relations, LLC                                         
Tel: 347-947-2093
Email: matthew@strategic-ir.com

FAQ

What is the size of Primech Holdings' (PMEC) share repurchase program?

Primech Holdings' share repurchase program authorizes the repurchase of up to 20% of the company's outstanding Ordinary Shares.

When will PMEC's share buyback program begin?

The program will begin after receiving shareholder approval at the upcoming Extraordinary General Meeting (EGM) and will continue until the next Annual General Meeting.

How will Primech Holdings fund the PMEC stock buyback?

The company plans to fund the share repurchases using its existing cash and cash equivalents.

Can Primech Holdings terminate the share repurchase program?

Yes, the share repurchase program may be suspended or discontinued at any time and does not obligate the company to acquire any specific amount of stock.

What is the purpose of PMEC's share buyback program?

The program aims to enhance shareholder value and reflects management's confidence in the company's business strategy and future growth potential.