NEW YORK (GenomeWeb News) - Strategic Diagnostics said today that its board of directors has approved a program to repurchase up to $3 million of the company's outstanding shares of common stock over the next 12 months.
"We believe that our stock price does not reflect our belief in the long term value of Strategic Diagnostics,” Francis DiNuzzo, president and CEO, said in a statement. “A repurchase program will benefit SDI's shareholders and demonstrates our board's and management team's confidence in our business.”
The company’s shares have plummeted more than 80 percent over the last 12 months, reaching a 52-week low of $1.09 on Oct. 15. In mid-afternoon trading today, shares were up $4.5 percent to $1.39.
Strategic Diagnostics said the stock repurchase program will be funded with working capital. The company has cash, cash equivalents, and marketable securities of approximately $11 million and approximately 20.4 million shares of common stock outstanding.
The repurchases may be made on the open market, in block trades, or otherwise, and the program may be suspended or discontinued at any time, the company said.