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Edited by Kapil334 at 23-12-2023 05:24 AM
iFinex, the parent company of Bitfinex, recently proposed a stock repurchase plan targeting shareholders who acquired company stocks back in 2016 when Bitfinex was hacked. The total repurchased shares can go up to 15 million.
iFinex Stock Repurchase Proposal
According to reports, iFinex, the parent company of Bitfinex, presented a proposal to its shareholders on September 22nd. The plan is to buy back 15 million shares at a price of $10 per share. This transaction would account for 9% of iFinex's outstanding shares, valuing the company at $1.7 billion.
As per the proposal, the success of this transaction would depend on whether iFinex can secure cash flow from at least one of its subsidiaries.
In 2016, Bitfinex was hacked, resulting in the theft of approximately 119,754 BTC due to issues with multi-signature wallets. At the time, Bitfinex offered compensation to users in the form of BFX tokens and redeemed BFX through the investment platform BnkToTheFuture to convert them into company shares. This repurchase plan is directed at shareholders who had initially received iFinex shares through that process.
iFinex stated in a statement to Bloomberg that this buyback is a result of the company's ""strong performance"" in recent years. They believe that after selling their shares, shareholders will reduce their holdings of relatively illiquid assets and lessen the need for iFinex to provide regulatory applications and respond to audit requests.
Tether and Bitfinex's Chief Financial Officer are also eligible for the repurchase.
According to documents seen by Bloomberg, some directors of iFinex and its subsidiaries are allowed to participate in the repurchase. This includes Giancarlo Devasini, the Chief Financial Officer of Tether and Bitfinex.
Furthermore, iFinex is willing to purchase all the shares until reaching the limit, and shareholders are required to express their willingness to sell their held shares to iFinex by October 24th. |
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Post time 17-10-2023 20:35:17