INVL Technology has repurchased a portion of its shares to support employee incentive programs and enhance shareholder value.

Target Company Overview

INVL Technology, an investment firm focused on information technology businesses, has successfully acquired 53,749 of its own shares on the Nasdaq Baltic exchange utilizing a Dutch auction method. The company purchased each share at the maximum predetermined price of €3.50. According to Kazimieras Tonkūnas, the managing partner of INVL Technology, this share buyback is intended to support employee incentive programs and potentially reduce the share capital by canceling the repurchased shares. Reducing the number of outstanding shares increases the value of the remaining shares for the company's stakeholders.

The share buyback took place between April 10 and April 17. INVL Technology had the authorization to buy back a maximum of 150,000 shares funded by a budget of €525,000 reserved for this purpose. Before the announcement of the share repurchase, shares of INVL Technology were trading at €3.32 on the exchange. The shareholder meeting held on April 30, 2024, sanctioned the company's share buyback process. The company is allowed to acquire up to 10% of its share capital, with a buyback period established for 18 months from the date of the shareholder decision. The maximum buyback price was based on the latest reported net asset value of INVL Technology, while the minimum price was set at €0.29. The repurchased shares will not be resold, thus the minimum sale price and sales procedure have not been defined.

Industry Overview

In Lithuania, the information technology sector is rapidly evolving, with various companies contributing to its growth and development. The country is establishing itself as a significant tech hub in the Baltic region, supported by a skilled workforce