Alto Ingredients, Inc. Announces $50 Million Share Repurchase Program
September 12 2022 - 8:30AM
Alto Ingredients, Inc. (NASDAQ: ALTO), a leading
producer and distributor of specialty alcohols and essential
ingredients, today announced that its Board of Directors has
authorized a share repurchase program for up to $50 million of
shares of its common stock with an initial purchase authorization
of $10 million.
“Given our positive long-term outlook, we
believe our shares are currently undervalued. Based on the strength
of our balance sheet, an opportunity exists to create value for our
stockholders by repurchasing stock while we continue to upgrade our
equipment and operating systems to increase efficiency and plant
reliability, expand our corn storage capacity, enhance our
specialty alcohol production, broaden our distribution, and
reinvest in essential ingredients capabilities,” said Michael
Kandris, CEO of Alto Ingredients.
Repurchases under the program may be made in the
open market, in privately negotiated transactions or otherwise,
with the amount and timing of repurchases depending on market
conditions and corporate needs. Open market repurchases are
expected to be structured to occur within the pricing and volume
requirements of Rule 10b-18. Alto Ingredients may also, from time
to time, enter into Rule 10b5-1 plans to facilitate repurchases of
its shares of common stock under this authorization.
This share repurchase program has no expiration
date, does not require the repurchase of any particular amount of
shares of common stock and may be implemented, modified, suspended
or discontinued in whole or in part at any time without further
notice. Amounts in excess of the initial $10 million purchase will
require additional board and preferred stockholder
authorization.
Alto Ingredients anticipates that the repurchase
of shares of its common stock under this program could be funded
with a combination of existing cash, cash flow, borrowings under
existing credit facilities and proceeds from potential incremental
borrowing arrangements.
About Alto Ingredients,
Inc.Alto Ingredients, Inc. (ALTO) is a leading producer
and distributor of specialty alcohols and essential ingredients.
The company is focused on products for four key markets: Health,
Home & Beauty; Food & Beverage; Essential Ingredients; and
Renewable Fuels. The company’s customers include major food and
beverage companies and consumer products companies. For more
information, please visit www.altoingredients.com.
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995 This release
contains forward-looking statements within the meaning of the
federal securities laws. Forward looking statements generally will
be accompanied by words such as “anticipate,” “believe,” “plan,”
“could,” “should,” “estimate,” “expect,” “forecast,” “outlook,”
“guidance,” “intend,” “may,” “might,” “will,” “possible,”
“potential,” “predict,” “project,” or other similar words, phrases
or expressions. Such forward-looking statements include, but are
not limited to, statements concerning any future stock repurchases
including the timing, amount or sources of funds, our belief that
Alto Ingredients’ shares of common stock are undervalued and an
opportunity exists to create value for Alto Ingredients’ long-term
stockholders, and any statements or assumptions underlying any of
the foregoing. It is important to note that Alto Ingredients’
plans, objectives, expectations and intentions are not predictions
of actual performance. Actual results may differ materially from
Alto Ingredients’ current expectations depending upon a number of
factors affecting Alto Ingredients’ business. These factors
include, among others, adverse economic and market conditions,
including for specialty alcohols and essential ingredients; export
conditions and international demand for the company’s products;
fluctuations in the price of and demand for oil and gasoline; raw
material costs, including production input costs, such as corn and
natural gas; and the effects of the coronavirus pandemic, and its
resurgence or abatement, and governmental, business and consumer
responses to the pandemic. These factors also include, among
others, Alto Ingredients’ ability to obtain additional purchase
authorizations from its board and preferred stockholders; the
inherent uncertainty associated with financial and other
projections; the anticipated size of the markets and continued
demand for Alto Ingredients’ products; the impact of competitive
products and pricing; the risks and uncertainties normally incident
to the specialty alcohol production and marketing industries;
changes in generally accepted accounting principles; successful
compliance with governmental regulations applicable to Alto
Ingredients’ facilities, products and/or businesses; changes in
laws, regulations and governmental policies; the loss of key senior
management or staff; and other events, factors and risks previously
and from time to time disclosed in Alto Ingredients’ filings with
the Securities and Exchange Commission including, specifically,
those factors set forth in the “Risk Factors” section contained in
Alto Ingredients’ Quarterly Report on Form 10-Q filed with the
Securities and Exchange Commission on August 9, 2022.
Media Contact:Bryon McGregor,
Alto Ingredients, Inc., 916-403-2768,
mediarelations@altoingredients.com
Company IR Contact:Michael Kramer,
Alto Ingredients, Inc., 916-403-2755,
investorrelations@altoingredients.com
IR Agency Contact: Kirsten
Chapman, LHA Investor Relations, 415-433-3777,
investorrelations@altoingredients.com
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