Linktone (LTON) announced that its board of directors has approved a stock repurchase program and will implement the program upon shareholder approval at the 2005 annual general meeting of shareholders in June.
Under the terms of the approved program, Linktone may repurchase up to $15.0 million worth of its issued and outstanding American Depositary Shares in open-market transactions on the Nasdaq National Market. The timing and dollar amount of repurchase transactions will be determined by the board depending on market conditions and will be subject to SEC Rule 10b-18 requirements.
Purchases during "blackout periods" under the company's insider trading policy will be effected pursuant to Rule 10b5-1. Linktone plans to fund repurchases made under this program from available working capital. As of December 31, 2004, Linktone had 27,253,156 ADSs outstanding.