UTMD Announces Self-Tender for 20% of Its Shares
UTMD plans a sizable self-tender at a premium price that could reduce its share count by about one-fifth.
Rhea-AI Summary
Utah Medical Products (UTMD) plans a cash tender offer to repurchase up to 650,000 shares, about 20% of its outstanding stock, at $75.00 per share.
The price is 17% above the average daily closing price over the last twelve months and 21% above the two-year average, and is just below the two-year intraday high of $75.75. The offer is expected to commence on September 22, 2026, or as soon as possible thereafter, and will expire fifteen business days later unless extended. If oversubscribed, UTMD will first buy all shares tendered by holders of fewer than 100 shares, then purchase remaining tendered shares on a pro rata basis. The company may purchase more than 650,000 shares, and the offer is not conditioned on any minimum tender.
Positive
- Issuer tender for up to 650,000 shares, about 20% of outstanding
- Tender price of $75.00 is 17% above 12‑month average close
- Tender price is 21% above two‑year average daily closing price
- Offer not conditioned on any minimum number of shares being tendered
- Odd-lot holders (<100 shares) given priority in oversubscription
- Selling holders avoid brokerage commissions and odd lot fees
Negative
- None.
News Explained
UTMD’s board-approved self-tender remains proposed rather than commenced; if completed, the company would pay tendering stockholders cash for shares, while continuing stockholders would retain shares in a transaction UTMD describes as anti-dilutive.
Key Figures
- Tender Price
- $75.00 per share
- Self-tender offer
- Maximum Shares
- 650,000 shares
- Shares subject to repurchase
- Outstanding Shares
- 20%
- Approximate portion represented by the maximum repurchase
- Premium to One-Year Average
- 17%
- Compared with the average daily closing price during the last twelve months
- Premium to Two-Year Average
- 21%
- Compared with the average daily closing price during the last two years
- Two-Year Intraday High
- $75.75
- Highest intraday trading price during the last two years
- Tender Commencement
- September 22
- Offer commencement date, or as soon as possible thereafter
- Tender Deadline
- October 7
- Shares must be tendered and not withdrawn by this date
Historical Context
-
Reported $87,528 thousand in cash, no debt, and ongoing share repurchases.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
self-tender financial
tender offer regulatory
pro rata financial
anti-dilution financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
SALT LAKE CITY, UT / ACCESS Newswire / September 15, 2026 / Utah Medical Products, Inc. (Nasdaq:UTMD) announces today that it intends to repurchase at a price of
The tender offer will commence September 22, or as soon as possible thereafter, and will expire fifteen business days thereafter, unless extended by the Company. If the offer is over-subscribed, shares will be purchased first from stockholders owning fewer than 100 shares and tendering all of such shares and then from all other shares tendered on a pro rata basis. The Company reserves the right to purchase more than 650,000 shares. The tender offer will not be conditioned on any minimum number of shares being tendered.
The Board of Directors of the Company has approved the tender offer but neither the Company nor the Board of Directors is making any recommendation to stockholders as to whether to tender or refrain from tendering their shares. Stockholders must make their own decisions whether or not to tender their shares and, if so, how many shares to tender.
According to Chairman & CEO Kevin Cornwell, "UTMD remains a healthy business with excess cash capable of providing the funds needed to repurchase shares. The Company wishes to make an investment that by anti-dilution will substantially enhance the value of shares held by its continuing stockholders confident in UTMD's future, by giving investors who are tired of the low share price an opportunity to sell shares at a premium over the current price." Selling stockholders will have the added benefit of avoiding brokerage commissions and odd lot fees.
This press release is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any shares of the Company's common stock. The solicitation of offers to buy the Company's common stock will only be made pursuant to the offer to purchase and related materials that the Company will be sending out to its stockholders shortly. Stockholders should carefully read the offer to purchase and related materials that the Company will be sending out because they contain important information, including various terms and conditions of the offer. Stockholders can obtain the offer to purchase and related materials free at the SEC's website at http://www.sec.gov, which site is also linked to UTMD's website at http://www.utahmed.com, or from UTMD's information agent, Computershare Trust Company, N.A., P.O. Box 43011, Providence, RI 02940-3011, Attn: Voluntary Corporate Actions, Telephone: (800) 522-6645. Stockholders are urged to carefully read these materials prior to making any decision with respect to the offer.
Safe Harbor Statement: Except for historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and are subject to the safe harbor provisions of that Act. The forward-looking statements set forth involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement. These risks and uncertainties, and assumptions regarding the Company's future operations and performance, could prove inaccurate and, therefore, there can be no assurance that the forward-looking statements will prove to be accurate.
Utah Medical Products, Inc., with particular interest in health care for women and their babies, develops, manufactures and markets a broad range of disposable and reusable specialty medical devices recognized by clinicians in over one hundred countries around the world as the standard for obtaining optimal long-term outcomes for their patients. For more information about Utah Medical Products, Inc., visit UTMD's website at www.utahmed.com.
Contact:
Brian Koopman
(801) 566-1200
SOURCE: Utah Medical Products, Inc.
View the original press release on ACCESS Newswire
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
When does UTMD's tender offer start and when does it end?
The tender offer is scheduled to commence on September 22, 2026, or as soon as possible thereafter, and will expire fifteen business days after commencement, unless UTMD extends the offer.
How will UTMD handle the tender offer if it is oversubscribed?
If more than 650,000 shares are tendered, UTMD will first purchase shares from stockholders owning fewer than 100 shares who tender all of their shares. After that, all remaining tendered shares will be accepted on a pro rata basis. The company also reserves the right to purchase more than 650,000 shares.
What benefits does UTMD highlight for stockholders who choose to tender?
UTMD states that selling stockholders receive a premium price over recent trading averages and avoid paying brokerage commissions and odd lot fees.