CLEARWATER, Fla., July 12, 2011 /PRNewswire/ -- ValCom, Inc. (VLCO.PK) announced today that its Board of Directors has approved the repurchase of outstanding Common Stock, by the Company's management, effective immediately.
The shares will be purchased from time to time at prevailing market prices, through open market purchases. There is no guarantee as to the exact number of shares that will be repurchased by the Company and the Company may discontinue purchases at any time that the Board of Directors determines additional purchases are not warranted. The repurchase program is expected to continue over the next six months unless extended.
"ValCom has recently paid down a significant portion of all short-term debt and the Board of Directors believe that the current share price does not reflect the company's true market value and has therefore approved a share buyback program," stated Vince Vellardita, President and CEO of ValCom. He continued, "The recent appraisal of the ValCom library, the value of our assets, the growth of My Family TV, and the recent distribution agreements we have signed for the library are all factors we have used to determine that ValCom stock is undervalued at its current levels."
The company recently announced the results of the appraisal of its content library. The first phase of the audit and appraisal focused on the television and film portion of the library. A present value of $40,182,000 has been placed on this portion of the library. The second phase of the audit and appraisal has focused on the audio portion of ValCom's library. A value of over $80 million has been placed on this portion of the library alone. The combined appraised value of ValCom's television, film and audio content exceeds $120 million.ValCom also recently announced that it has entered into a distribution deal with Universal Media Group, a division of Universal Studios, for The Platters Golden Anniversary album and that it will also be releasing Ike & Tina Turner: The Lost Tapes as a subsequent album. Both projects pull from content in ValCom's library. About ValCom, Inc.