We are moving forward with concrete steps in our comprehensive Share Price Recovery Initiative (SPRINT) plan. Shareholders will now be able to access financing via Cemargos common shares, since the Central Counterpart Risk Chamber of Colombia and the Colombian Stock Exchange announced that as of Monday, April 17, the company's common stock complies with the criteria stipulated by these entities to once again be eligible for repo operations.
The 5 pillars of SPRINT:
- Maintain focus on strong operating and financial results with an emphasis on profitability.
- Significantly increase dividend distributions to shareholders by 2023.
- Launch a share buyback program.
- Improve the visibility of the value of the operations and continue the process for listing the business in the United States on the New York Stock Exchange.
- Improve the liquidity of common shares by signing a local market creation contract, so that they are once again eligible for repo operations within the Colombian Stock Exchange.
These are the repos operations according to the Bank of the Republic https://acortar.link/m1FhsS.
Felipe Aristizabal Restrepo, Vice President of Finance, tells us about it.
Let's review why SPRINT was born
During 2022, common and preferred shares closed at record lows on the Colombian Stock Exchange (BVC) with reductions of 41% and 39%, respectively. Said performance is associated with structural market phenomena such as the lack of liquidity and the temporary decrease in institutional investors, which have a downward impact on all issuers and which, in our case, does not represent the solidity and health of the company's fundamentals. .
For this reason, we are assuming as a priority for 2023 the commitment to promote and improve initiatives around closing the gap between the price that is reflecting the share in the BVC and its fundamental value; For this, we designed and began the execution of the SPRINT comprehensive plan, an articulated program that systematically addresses the main and diverse causes of the aforementioned decoupling.
