VerifyMe Inc. (VRME) Announces SPAC Liquidation, Initiates Share Buyback

July 1, 2022 8:30 AM EDT

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VerifyMe, Inc. (NASDAQ: VRME) announced today that it and its co-sponsor have elected to not extend the period for G3 VRM Acquisition Corp (NASDAQ: GGGVU), a special purpose acquisition company (the "SPAC") to consummate a business combination, and that VerifyMe has initiated a new share repurchase program.

VerifyMe, together with the co-sponsor of the SPAC, has made the decision not to extend the period for the SPAC to consummate a business combination and accordingly the SPAC is expected to dissolve and liquidate in accordance with its charter. As a result of the current market conditions, our Board of Directors determined that it was not in the best interests of the Company to allocate additional financial capital at this time for the SPAC to consummate a business combination and instead will focus on our core business and recent acquisition of PeriShip. The audited financial statements of PeriShip for the years ended December 31, 2021, and 2020, which we recently filed, show income before provision for income tax of $3.1 million for the year ended 2021.

On June 30, 2022, our Board of Directors also approved a new $1.5 million share repurchase program to repurchase shares of the Company's common stock commencing July 1, 2022, for a period of 12 months, which we believe will provide a good return of equity and a benefit to our shareholders. This new repurchase program replaces our existing share repurchase program that was due to expire in August 2022 and is now terminated. The timing and amount of any shares repurchased under the new repurchase program will be determined by the Company's board and management based on its evaluation of market conditions and other factors. The repurchase program does not obligate the Company to purchase any particular number of shares and may be suspended or discontinued at any time.

Patrick White, Chief Executive Officer stated, "As we navigate this challenging economic environment, and have now completed a strategic acquisition, we have made the decision to align our resources accordingly. We believe the financial results of the acquisition show we are on the right path to grow and enhance our shareholder value."

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