Vision Marine Technologies: A Strategic Stock Repurchase Program

Vision Marine Technologies Inc. (NASDAQ: VMAR), a pioneer in high-performance electric marine propulsion, has announced a strategic move to enhance shareholder value by approving a stock repurchase program. The company's Board of Directors has authorized the repurchase of up to 5% of its issued and outstanding common shares, representing approximately 490,671 shares. This decision comes as the company aims to address the challenges faced by microcap stocks in achieving fair valuation in the current market environment.

The stock repurchase program is set to be implemented through a 10b-18 trading plan, which allows for a systematic and disciplined approach to repurchasing shares at the company's discretion. This structure provides safe harbor protections for Vision Marine, enabling it to repurchase shares without the need for continuous board approval or disclosure of specific timing and amounts. The 10b-18 trading plan also ensures a balanced approach to capital allocation, preserving liquidity for operational growth and other corporate purposes.

Vision Marine's CEO, Alexandre Mongeon, commented on the decision, stating that the company's stock price does not accurately reflect its value and long-term potential. By implementing a stock repurchase program, Vision Marine aims to take a strategic step to enhance shareholder value and demonstrate confidence in its vision to lead the industry with its industrialized, turnkey electric powertrain solutions.

The timing and amount of shares repurchased will be determined pursuant to the 10b-18 trading plan, with the company's management evaluating market conditions and other factors. Any repurchased shares will be available for use in connection with its stock plans and for other corporate purposes. The repurchase program will be funded using the company's working capital.

Vision Marine Technologies' stock repurchase program aligns with its long-term growth strategy, as it demonstrates confidence in the company's intrinsic value and enhances shareholder value. The program signals management's belief that the current stock price does not accurately reflect the company's value and potential. By repurchasing shares, Vision Marine can potentially support the stock price, attract institutional investors, and improve market liquidity. However, it is crucial for the company to balance this initiative with maintaining adequate capital for operational growth and R&D in the capital-intensive electric marine propulsion sector.

In conclusion, Vision Marine Technologies' stock repurchase program is a strategic move that aligns with the company's long-term growth strategy. By demonstrating confidence in its intrinsic value and enhancing shareholder value, Vision Marine aims to address the challenges faced by microcap stocks in achieving fair valuation in the current market environment. The program's structure, through a 10b-18 trading plan, ensures a systematic and disciplined approach to repurchasing shares while preserving liquidity for operational growth and other corporate purposes.