BOULDER, Colo. — New Frontier Media, Inc. (Nasdaq: NOOF), a leading provider of transactional television and independent general motion picture entertainment, today announced that its board of directors has authorized a new program for the repurchase of up to 1,000,000 shares, or approximately 5%, of the Company’s outstanding common stock, over the next 31 months.
“We are continuously evaluating opportunities to utilize our capital to more effectively enhance shareholder value,” noted Michael Weiner, chief executive officer of New Frontier Media, Inc. “Under previously authorized programs and transactions, we have repurchased 5.2 million shares of our common stock at an average price of $2.93 per share, and we currently have 19.5 million shares outstanding.”
“At the end of our most recent fiscal quarter, New Frontier Media had approximately $17.3 million of cash and cash equivalents which is sufficient to support the Company’s working capital needs and pursue strategic, accretive opportunities. Meanwhile, we believe that our common stock is currently selling below the Company’s intrinsic value. Through our new repurchase program, we can execute targeted purchases of our common stock that should benefit earnings per share and shareholder value as New Frontier Media pursues its strategic growth initiatives,” concluded Mr. Weiner.
The new program will be conducted in a manner intended to comply with the safe harbor provisions of Rule 10b-18 promulgated under the Securities Exchange Act of 1934, as amended, and to minimize the impact of the purchases upon the market for the securities. The repurchase program is subject to the insider-trading window periods imposed by our Company’s trading policy, and may be suspended or terminated at any time by our board of directors without prior notice. Under the program, we may, but are not required to, purchase shares of our common stock from time to time through open market or privately negotiated transactions, as market and business conditions permit. Any repurchased shares will be returned to authorized but unissued shares of our common stock in accordance with Colorado law.