4D Board Okays Stock Repurchase
The board of 4D Seismic, Inc. has approved a proposal to repurchase up to 1 million shares of the Houston-based company's common stock in the market.
The board discussed the merits of a potential share repurchase plan or a quarterly cash dividend of $.08 per share at their June meeting. The cash dividend initiative failed to gather the required support. However, the board unanimously approved the share repurchase proposal.
The share repurchase will represent up to 50% of the free trading shares outstanding. The board allocated a price limit up to $3 per share. The repurchase plan will commence during the fourth quarter of this year and finish no later than January 31, 2007.
According to 4D, the board favors a repurchase that will support and increase the price and value of the stock versus a distribution of cash. Ultimately, members agreed to reconsider the proposal of a cash dividend in the first quarter of 2007 after analyzing and evaluating the company's cash position and cash flow.