In the last check Wednesday, The BeautyHealth Company (NASDAQ: SKIN) has risen 11.61% to $12.93 following its share repurchase. SKIN closed the previous session at $11.58, moving between $11.74 and $12.98.
How will SKIN repurchase shares?
A share repurchase program of up to $200 million has been authorized by the BeautyHealth (SKIN) Board of Directors. BeautyHealth entered into an accelerated share repurchase agreement (“ASR”) with JPMorgan Chase Bank, NA to purchase $100 million of its common stock in connection with the share repurchase authorization. SKIN will be authorized to repurchase $100 million of common stock following the completion of the ASR.
Management at BeautyHealth believes that the stock is trading at a price that makes a repurchase prudent at this time, in agreement with the Board. Its buyback demonstrates its commitment to BeautyHealth’s long-term growth prospects. With disciplined capital allocation, SKIN intends to create value for shareholders, while remaining in a strong cash position for mergers and acquisitions.
It is expected that SKIN will fund the repurchase with cash on hand. In addition to paying $100 million, BeautyHealth will receive approximately 7.7 million shares of the company’s common stock on September 29, 2022. In order to determine the number of shares to be repurchased, a discount will be deducted from the daily volume-weighted average price of the Company’s common stock during the term of the ASR, and adjustments will be made according to its terms. During the first quarter of 2023, the ASR is expected to be finalized.
In what way will SKIN be affected?
A variety of methods may be used by BeautyHealth (SKIN) to repurchase shares under the share repurchase authorization from time to time, including open market purchases, privately negotiated transactions, and other accelerated share repurchase programs. Stock prices, economic and market conditions, and other factors will influence the timing, price, and size of purchases. SKIN may suspend or discontinue the repurchase authorization at any time at its discretion and is not obligated to acquire a particular amount of its common stock.