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MIDDLETOWN, R.I., Dec. 11, 2024 (GLOBE NEWSWIRE) -- KVH Industries, Inc. (Nasdaq: KVHI), announced that it has entered into purchase and sale agreements for its Rhode Island office and factory. In addition, KVH announced that its Board of Directors has authorized a share repurchase program with an aggregate purchase price of up to $10 million.
“We expect that the sale of our Rhode Island facilities will provide us with approximately $12 million, net of transaction costs, for working capital and potential strategic opportunities while also allowing us to move to a new facility better suited to our future needs,” says Brent Bruun, KVH’s chief executive officer. “The Board’s authorization of a share repurchase program also underscores our commitment to the Company’s shareholders. It reflects our confidence in the company’s strategy, strong balance sheet, and ability to leverage the strategic opportunities that lie ahead to build long-term value.”
On December 5, 2024, KVH entered into a purchase and sale agreement with Knight Capital LLC, under which the company agreed to sell its property located at 75 Enterprise Center, Middletown, Rhode Island, to Knight Capital for a purchase price of $8.5 million. The purchase includes related buildings, improvements, and other assets. Consummation of the transaction is subject to customary closing conditions and specified zoning approvals.
Upon consummation of the sale, KVH will remain in possession of the property as a tenant under a triple-net lease having an initial term of six months, which the company can extend for up to an additional three months as it completes its manufacturing wind-down and identifies a new headquarters facility.
In addition, on December 9, 2024, KVH entered into a purchase and sale agreement with 50 Enterprise LLC, a subsidiary of Seacorp, Inc., under which the company agreed to sell its property located at 50 Enterprise Center, Middletown, Rhode Island, to the purchaser for a purchase price of $4.5 million. The purchase includes related buildings, improvements, and other assets. Consummation of the transaction is subject to customary closing conditions.
On December 9, 2024, the company’s Board of Directors also authorized a share repurchase program under which the Company may purchase outstanding shares of KVH common stock for an aggregate purchase price of up to $10 million.
Under the program, the company, at management’s discretion, may repurchase shares from time to time through various means, including on the open market, in privately negotiated transactions or block transactions, or through an accelerated repurchase agreement. KVH may elect to make purchases under Rule 10b-18 under the Securities Exchange Act of 1934, as amended, which imposes certain volume limitations, and/or under Rule 10b5-1 under that act, which would permit repurchases to occur during periods when the company might otherwise be precluded from making purchases under insider trading laws or company policy. The volume and timing of such repurchases will depend on various factors, including the availability of shares, price, market conditions, alternative uses of capital, liquidity, general business conditions, satisfaction of debt covenants, and applicable regulatory requirements. The program does not obligate KVH to repurchase any minimum number or dollar amount of shares, and the program may be modified, suspended, or terminated at any time without prior notice.