CPI Card Group announces stock repurchase from Tricor Pacific

CPI Card Group announced that it has entered into a second agreement to purchase shares of the company’s common stock from Tricor Pacific Capital Partners, a fund managed by Parallel49 Equity, under the company’s previously announced $20M share repurchase authorization. The new agreement covers the period April through June and follows an initial agreement that expires on March 31. Pursuant to the new agreement, the company has agreed to purchase from Parallel49, and Parallel49 has agreed to sell to the company, a number of shares equal to three times the number of shares acquired by the company in the open market from non-Parallel49 holders from time to time during the period April 1 through June 30, up to a maximum of 325,000 shares. The purchase price for the shares to be acquired from Parallel49 will be equivalent to 98% of the volume-weighted average purchase price of shares bought by the Company in the open market from non-Parallel49 holders during that time period, with settlement occurring within five days of the end of the period. The agreement has been approved by the audit committee of the board of directors of the company. The company will settle with Parallel49 for purchases made under the first agreement, which covered the period December 11, 2023 through March 31, within five days after March 31. As of December 31, 2023, Parallel49 owned 6.6 million shares of CPI common stock, or approximately 57% of outstanding shares. CPI purchasing shares from Parallel49 at a 3 to 1 ratio to open market purchases maintains or reduces the Parallel49 ownership percentage in CPI and minimizes the share repurchase program’s impact on CPI’s public float. CPI and Parallel49 may enter into similar agreements in the future, consistent with the company’s share repurchase authorization. The company has an existing authorization to purchase up to $20M of its common stock through open market purchases and privately negotiated transactions, expiring on December 31.