HLS Systems (HOLI) to Buyback 3M Shares of Common Stock; Cancels Incentive Share Plan
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HLS Systems International, Ltd. (Nasdaq: HOLI) announced today that its Board of Directors has authorized the establishment of a share repurchase program for the Company to purchase up to 3 million shares of its common stock on the open market with an expiration date of March 31, 2010. The share repurchase will be cash-financed by HLS' positive cash flow from operation. The timing of such purchases will be determined by HLS' management taking into consideration of market conditions, stock prices, and other factors.
The Company also announced that it has cancelled its incentive share plan, which totaled 7 million remaining shares in aggregate for the years of 2009, 2010, and 2011, through the immediate issuance of 4 million shares to its Chinese subsidiaries' original selling shareholders. The incentive share plan was part of the merger agreement between Gifted Time Holdings and Chardan North Acquisition Corp., in which HLS Systems International was created. Under the terms of the merger agreement, the Company was obligated to issue to the original selling shareholders up to 11 million shares over 5 years, commencing in 2007 (2 million shares per year for the first four years and 3 million shares in the fifth year) should the Company achieve certain pre-determined comprehensive income targets. The selling shareholders previously earned 4 million shares under this plan in 2007 and 2008.
The Company also announced that it has cancelled its incentive share plan, which totaled 7 million remaining shares in aggregate for the years of 2009, 2010, and 2011, through the immediate issuance of 4 million shares to its Chinese subsidiaries' original selling shareholders. The incentive share plan was part of the merger agreement between Gifted Time Holdings and Chardan North Acquisition Corp., in which HLS Systems International was created. Under the terms of the merger agreement, the Company was obligated to issue to the original selling shareholders up to 11 million shares over 5 years, commencing in 2007 (2 million shares per year for the first four years and 3 million shares in the fifth year) should the Company achieve certain pre-determined comprehensive income targets. The selling shareholders previously earned 4 million shares under this plan in 2007 and 2008.
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