Press Release
(Issuer Stock Purchase Program)

Summary

This template is a press release that can be used to announce an issuer's stock repurchase program. This template includes practical guidance, drafting notes, and alternate clauses. Under Rule 10b5-1 (17 C.F.R. § 240.10b5-1) under the Securities Exchange Act of 1934, as amended (Exchange Act), a person that possesses material nonpublic information about a company, including the company itself, may not trade in its securities. As a result, companies typically issue a press release to publicly disclose the material elements of a share repurchase program before buying back any shares under the program. The material elements of a share repurchase program to be disclosed include the: • Maximum number of shares to be repurchased or the maximum amount to be spent on share repurchases • Time period during which the company may complete repurchases • Corporate purpose of the share repurchase program • Planned types of repurchase transactions (for example, open-market purchases) A company listed...