CMC Markets, a cryptocurrency and blockchain company recently announced its plans to buy back £30 million worth of shares with the money it has made from trading cryptocurrencies.
CMC Markets has announced the start of a £30 million share repurchase program as part of its objective to lower its share capital. The initiative will begin immediately and will be completed by June 30, 2023, according to the release. The repurchase scheme, however, would be subject to regulatory clearance, according to the broker.
Over 29 million ordinary shares will be repurchased by CMC.
CMC Markets recently announced that it would buyback 29,071,747 common shares. 4.25 percent of the company’s existing outstanding shares are represented by the ordinary shares it seeks to buy back.
As a result of this move, the business has already named RBC Europe Limited as the repurchase program’s manager. The broker had planned to debut the program on March 2, but it had to be postponed owing to regulatory permission delays. After talking with officials, it seems that the corporation will most likely get clearance.
“The Board has agreed to repurchase ordinary shares to repay surplus money to shareholders,” CMC said.
The company claimed that it intends to employ the repurchase program in conjunction with its present dividend policy to provide a balanced approach to shareholder returns. The firm’s full-year financial guidelines, however, would stay unaltered, according to the statement.
CMC Markets wants to maximize the value of its stockholders.
CMC Markets has also lowered its revenue forecast for the year to roughly £260 million, down from £300 million before.
Spread betting, contracts for differences (CFDs), and currency pair trading are all available via the broker. CMC Markets has announced the launch of new UK investment B2B and D2C platforms, which will provide traders and investors with real shares and investment products.
The company also plans to divide its leveraged and non-leveraged divisions, in addition to the repurchase program. The board believes that dividing the companies would maximize shareholder value. The ultimate decision on the separating process, however, has yet to be made.