Mercer International Inc.has announced that its Board of Directors has re-authorized the Company's share repurchase program to allow for the repurchase of up to approximately $14.4 million of the Company's outstanding shares of common stock over the next 12 months. As of the date hereof, the Company has repurchased a total of approximately $10.6 million shares of its common stock in connection with the previous $25.0 million share repurchase program authorized by its Board of Directors in August 2011.
Mr. Jimmy Lee, President and Chairman, stated: "Our intention to continue to make open market purchases of our outstanding shares of common stock reflects our Board of Directors' continued confidence in our growth prospects and our desire to create value for our shareholders. Based on current market prices, we believe the re-authorization of the repurchase program is in the best interests of the Company and our shareholders."The program calls for the repurchases to be made at management's discretion in the open market or in privately negotiated transactions from time to time in compliance with applicable laws, rules, and regulations, including Rule 10b-18 under the Securities Exchange Act of 1934, as amended, subject to cash requirements for other purposes, and other relevant factors, such as trading price, trading volume and general market and business conditions.
There is no guarantee as to the exact number of shares that will be repurchased by the Company, and the Company may discontinue repurchases at any time that the Board of Directors determines additional repurchases are not warranted. All of the repurchases will be funded by the Company's available working capital. As of August 1, 2012, the Company had approximately 55.8 million shares outstanding and, as of June 30, 2012, the Company had approximately €130.9 million in cash and cash equivalents.
Our Board of Directors will periodically review the share repurchase program and may authorize adjustments to the program's term and size. The Board may also suspend or discontinue the repurchase program at any time.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any country or state in which such offer, solicitation, or sales of these securities would be unlawful prior to registration or qualification under the securities laws of any such country or state.