Nexxen to seek authorisation for new $50m share buyback

17th Oct 2024 15:12

(Sharecast News) - Nexxen International, a global advertising technology platform, announced its intention to seek authorisation for a new $50m share repurchase programme on Thursday.

The AIM-traded firm said that as an Israeli company, it was required to comply with recently-adopted regulations mandating a creditor objection period before the programme could take effect.

It said the new process replaced the previous requirement for Israeli court approval, shortening the authorisation period.

Additionally, Nexxen needed to secure consent from its bank lenders before starting the share repurchase.

Once the creditor objection period expires and consent was obtained, Nexxen said it would have the option - but not the obligation - to repurchase shares.

The company said it would announce further details once the programme was authorised, or if its initiation was delayed due to creditor objections or lender approval issues.

Any repurchased shares would be classified as dormant under Israeli law, meaning they would hold no rights and be reclassified as treasury shares.

This new programme was intended to replace the current $50m share repurchase programme, which expires on 1 November.

At 1453 BST, shares in Nexxen International were up 3.85% at 312.58p.

Reporting by Josh White for Sharecast.com.