DANYANG, China, Jan. 26, 2011 /PRNewswire/ -- Lihua International, Inc. (Nasdaq: LIWA) ("Lihua" or the "Company"), a leading Chinese developer, designer, and manufacturer of low cost, high quality alternatives to pure copper products, including refined copper products and superfine and magnet wire, today announced that its Board of Directors has authorized the repurchase by the Company of up to $15 million of its common shares over the next 12 months.
The Company plans to purchase shares from time to time, on the open market, or through private transactions. The timing of purchases, number of shares purchased and prices at which shares are purchased will be determined by Lihua's management, and will be subject to market conditions as well as other factors. The share buy back program will be implemented and executed in compliance with all relevant laws, rules and requirements relating to the repurchase by the Company of its own shares. This program will be funded from the Company's available cash and operating cash flow.
"During 2010, we achieved our primary strategic and operational objectives of expanding capacity and growing our top and bottom-line results, and entered 2011 poised for continued strong growth as copper demand in China remains robust," said Jianhua Zhu, Chairman and CEO of Lihua. "With our new refined copper production facility scheduled to come on line in the second half of the year, we believe that our shares represent a compelling investment opportunity at current levels. It is unfortunate that there have been a number of false allegations regarding our company. We work extremely hard at Lihua and have a proven track record of growth, as well as sound business and financial reporting practices that are in compliance with U.S. SEC regulations as well as PRC tax regulations. We believe these attacks are an attempt to undermine the significance of our accomplishments for the benefit of a group of short sellers. We stand by the legitimacy and validity of our financial results and internal controls that are further overseen by a top-10 auditing firm.
"The approval of this share repurchase plan reflects the confidence of our Board of Directors and management team in our ability to continue carrying out our growth strategy and our strong commitment to enhancing shareholder value."