Angeion Corporation (NASDAQ: ANGN) today announced that its Board of Directors has approved an increase in the Company’s stock repurchase program. Under the amended plan, the Company is authorized to purchase up to an additional $2 million of its outstanding shares of common stock in the open market or in privately negotiated transactions between now and April 30, 2012. During the fiscal year ending October 31, 2010, Angeion repurchased 466,049 shares for approximately $2 million.
“The Board is resuming the stock repurchase program because it believes repurchasing shares at current prices is an effective use of our capital benefiting, both the Company and our shareholders,” said Mark W. Sheffert, Chairman of the Angeion Board of Directors.
As of January 31, 2011, the end of its first fiscal quarter, Angeion had working capital of $12.7 million including approximately $10.5 million in cash and short-term investments. “The Company’s operations, while not profitable in recent quarters due to one-time charges, have been generating consistently strong cash flow. The Board has assessed and will continue to periodically assess the Company’s capital position and, if it determines that the Company’s capital exceeds the amount necessary to fund its operating and strategic needs, Angeion will look to use the excess capital to purchase its shares in both open market and privately negotiated transactions,” said Sheffert.
Angeion intends to make its public purchases in compliance with SEC Rule 10b-18. Under that rule, open market purchases are limited in any single day to 25% of the average daily trading volume for the four prior calendar weeks. The average daily trading volume for the four weeks ended April 8, 2011 was 6,347 shares. This would allow Angeion to purchase a total of 1,587 shares per day through open market purchases. Repurchases through privately negotiated transactions are not subject to these restrictions.