Unity Bancorp, Inc. [NASDAQ: UNTY] has issued a statement about its share repurchase program. The US-based firm has declared that its Board of Directors has unanimously agreed to the share buyback program. As per the new program, Unity Bancorp is planning to buyback as much as 750,000 shares, or nearly 7.5% of its outstanding common stock.
The amount of buying and the timing will be determined by a number of factors. The trading value of the common stock of the company also contributes to the determination. Unity Bancorp revealed that the share buyback program would commence by considering the market conditions and UNTY will make the repurchases from time to time as per the 2021 share buyback program.
Furthermore, the firm has disclosed that it will make any repurchases under a Rule 10b5-1 trading plan. This rule would allow buybacks under pre-set terms at times when, under insider trading laws or because of self-inflicted blackout periods, the business would otherwise be prohibited from doing so.
Additionally, the number, nature, price, and timing of buybacks shall be at the full will of the management, reliant on the stock price, market conditions, relevant securities laws, plus SEC Rule 10b-18, corporate and regulatory supplies, capital, and liquidity needs or other factors, except in the case of buybacks under a trading plan under Rule 10b5-1. The board of directors of the firm has full right to dismiss, revise, cancel, postpone, or halt the share buyback program.