Eco Wave Power Global AB, a publicly traded onshore wave energy company, is pleased to announce that following its official request, submitted to the Swedish Financial Supervisory Authority (the SFSA) on the 21st of December, 2023, for authorisation for the repurchase of American Depositary Shares (the ADS) representing up to 10 percent of the total number of shares in the Company, the SFSA responded that in its opinion, the ADS are not considered equivalent to shares by Chapter 19 of the Swedish Companies Act.
As a result, the Company should be able to repurchase ADSs, by Swedish law.
Repurchase of ADS
By this decision, Eco Wave Power will enter into relevant agreements with a bank for the execution of any necessary steps related to the buyback.
As previously announced, the repurchase of the ADS was previously approved by Eco Wave Power’s shareholders at the 2024 Annual General Meeting (the “AGM”).
Terms of purchase
Shareholders at the AGM resolved the authorisation for the Company’s board of directors to make purchases of the ADS by the following main terms:
- ADS repurchases may be made only on the Nasdaq Capital Market or any other regulated market.
- The authorisation may be exercised on one or more occasions before the 2025 annual general meeting.
- The maximum number of ADS that may be repurchased so that the Company’s holding of shares at any given time does not exceed 10 percent of the total number of shares in the Company.
- Repurchases of the ADS on the Nasdaq Capital Market may only be made at a price within the range of the highest purchase price and lowest selling price at any given time.
- Payment for the ADS shall be made in cash.
ADS buyback programme
“We are very excited to finally be able to proceed with the buyback,” said Eco Wave Power’s Founder and Chief Executive Officer Inna Braverman.
"We believe that our ADS buyback programme will allow our leadership to have a greater scope to act and have the opportunity to improve the Company’s capital structure, driving greater shareholder value and improving the investment value of our company."
SFSA and shareholder approval
The authorisation from the SFSA and shareholder approval from the AGM does not obligate the Company to repurchase any ADSs. Any repurchases will be made through open market purchases, privately negotiated transactions, or otherwise in compliance with Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended.
The timing, manner, and amount of any repurchase will be determined by the Company’s management based on its evaluation of business, market, and economic conditions, corporate and regulatory requirements, and other considerations.
