Research In Motion Limited (NASDAQ: RIMM) is trying to do whatever it can to get its shares back up. It compromised with the Saudis to get its BlackBerry workaround done to restart its service. And tonight it gave an update on its share buyback plan.
RIM has reached an agreement to purchase 1,530,000 shares of its outstanding common shares, about 0.28% of its common shares outstanding, for cancellation. The company noted that this was under a private agreement between RIM and “a non-related third-party financial institution.”
The total price tag: $79.8 million (U.S. Dollars).
RIM also noted that the purchase price was negotiated “at arms’ length between the parties and is at a discount to the prevailing market price of RIM’s common shares on the Toronto Stock Exchange and NASDAQ Stock Market at the time of the purchase.” The common shares repurchased will be included in calculating the maximum number of common shares that RIM may purchase through its share repurchase program announced on June 24, 2010 and July 13, 2010.
RIM has repurchased a total of 36,141,500 shares of its common shares. This is comprised of 32,611,500 common shares purchased through the facilities of the NASDAQ and TSX (16,375,700 of which have been purchased since June 24, 2010) and 3,530,000 of its outstanding common shares purchased pursuant to private agreements between RIM and non-related third-party financial institutions.
RIM closed up 1.1% at $55.93 today. When growth companies have to support their stocks with buybacks….
JON C. OGG