says the company plans to buy back up to 10 million shares of its beleaguered stock over the next 12 months as it looks to avoid getting delisted from the Nasdaq.to shareholders, the former senior exec at Universal, Disney and MGM who has been in the top job at Cinedigm since 2011 also said the company plans to rename itself in the coming months.
Shares in Cinedigm gained 5% on nearly triple their average trading volume to close at 52.5 cents. That’s roughly the mid-point of the stock’s range over the past year, but also well below the one-dollar threshold established by the Nasdaq for all companies listed on its exchange. Shares got to a recent high of around $2.50 in September 2021. Last fall, the company reached an agreement for a 180-day “cure period” with Nasdaq after having been warned of a potential delisting.
Stock buybacks are generally viewed as a positive by Wall Street, though enthusiasm is not guaranteed in all corners. Toward the end of Philippe Dauman’s tenure as CEO of Viacom as CEO, in one famous example, the exec ran afoul of controlling shareholder National Amusements in part by pursuing $15 billion in buybacks as the stock continued to drift. That money would have been better spent on M&A or digital investments, the critique went.