- The Company is expected to repurchase nearly USD 20,000,000 of Class A common stock under the repurchase program over the one year period.
- To realize this, Boston Omaha plans to establish Rule 10b5-1 trading plans.
In the recent news, the Board of Directors of Nebraska based Boston Omaha Corporation reportedly approved a share repurchase program which enables the Company to repurchase upto USD 2,000,000 of its Class A common stock over a period of one year which is expected to end in 30th June the next year. Apparently, this repurchase would either take place through open market purchases, privately negotiated transaction, or in agreement with Rule 10b-18 under the 1934 Securities Exchange Act.
In line with this, the Board has also authorized Boston Omaha to securely establish Rule 10b5-1 trading plans to realize these share repurchases. The established plan allows companies to repurchase shares at times when they are prevented to do so otherwise, owing to stringent security laws or self-imposed trading blackout period.
As per official sources, under any Rule 10b5-1 trading plan, the Company is entitled to adopt its third-party broker, subjected to Securities and Exchange commission regulations pertaining to certain price, market, timing constraints, and volume.
However, the actual number, timing, and value of stocks repurchased under this repurchase program solely depends on a number of aspects such as constraints specified in any Rule 10b5-1 trading plans, general business, market conditions, and alternative investment avenues. Moreover, the share buyback program does not compel Boston Omaha to take over any specific number of shares in any period.
For the record, established in 2009 in Nebraska, the U.S, Boston Omaha Corporation is one of the major public holding companies with majority owned outdoor advertising, telecom services, and surety insurance businesses. The company also securely maintains minority investments in a bank, commercial real estate service businesses, and a national residential homebuilder.