– Keeping Investors Informed while Navigating the Rule 10b-18 safe harbor and IPO Timing for Share Repurchase –
MIAMI BEACH, FL / ACCESSWIRE / September 5, 2023 / LQR House Inc. (the “Company” or “LQR House”) (NASDAQ:LQR), a visionary marketing company focused on becoming a prominent force in the alcoholic beverage sector, reiterates its commitment to repurchase up to 20% of the company’s free-float (based on the closing share price September 1, 2023), in line with the announcement made on August 26, 2023. On August 28th, 2023, the Company initiated an agreement with Dominari Securities LLC (“Dominari”) to execute the share buyback program. The program is anticipated to begin around September 8th, 2023.
Within the share buyback program framework, repurchases may occur periodically through open market transactions and privately negotiated acquisitions, all in adherence to Rule 10b-18 under the Securities Exchange Act of 1934, as amended. Dominari will possess exclusive discretion in determining the timing, volume, pricing, and method of acquiring securities during this period. It is important to note that the share buyback program does not impose a mandatory obligation on the Company to procure a specific quantity of common stock, and the program retains the flexibility to be halted or terminated at any point. The Company anticipates funding these purchases utilizing its existing cash reserves.
Rule 10b-18, established by the SEC, acts as a crucial safe harbor provision shielding companies and their affiliates during stock repurchases. It safeguards against market manipulation liability under the Securities Exchange Act of 1934, provided it adheres to specific conditions, including not acquiring more than 25% of its average daily trading volume in a single day. For issuers who recently conducted an IPO, compliance with the Rule 10b-18 safe harbor requires waiting four weeks (September 7th, 2023) after securities trading commenced, before initiating any share purchases for the buyback.
Sean Dollinger, CEO of LQR House, underscored the company’s commitment to transparency and its proactive stance in launching the buyback initiative, remarking, “We recognize the excitement surrounding our share repurchase program, and LQR House is poised and eager to bring it to fruition. As a new entrant on the NASDAQ, we must adhere to the required four-week waiting period before initiating share purchases. Rest assured, as soon as this waiting period concludes, we will promptly notify everyone, allowing them to witness this significant milestone in real-time.”
