Linktone (LTON) announced that it has completed a US$15 million stock repurchase program that had been previously implemented beginning in September 2005.
In addition, the company's board of directors has approved a new US$20 million stock repurchase program and will implement the program upon approval at an extraordinary general meeting of shareholders which is scheduled to be held on August 7, 2006.
Linktone shareholders previously authorized the repurchase of up to US$15.0 million worth of American Depositary Shares (ADSs) of the company at the Annual General Meeting held on September 7, 2005. As of June 23, 2006, the company had effected transactions in the open market purchasing 1,866,600 ADSs for an aggregate purchase amount of approximately US$15.0 million, completing the entire share repurchase program.
Linktone's CEO Michael Li commented, "Following the recent successful completion of our previous US$15 million stock buyback announced in 2005, we believe that immediately having another stock buyback program in place is a clear testament to our overwhelming confidence in Linktone's ability to grow its core WVAS business and to build long term value for our shareholders."
Under the terms of the new program, subject to shareholder approval, Linktone may repurchase up to US$20.0 million worth of its issued and outstanding ADSs in open-market transactions on Nasdaq.