CompoSecure Board of Directors Approves Spin-Off of Resolute Holdings and Authorizes Expanded Share Repurchase Program to $100 Million
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CompoSecure's Board has approved the spin-off of Resolute Holdings and expanded its share repurchase program to $100 million. The spin-off will distribute Resolute Holdings shares to CompoSecure shareholders, with trading expected to start on Nasdaq under the ticker 'RHLD'. The transaction is taxable and Resolute Holdings is expected to have limited profitability in FY 2025.
February 10, 2025 | 1:15 pm
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NEUTRAL IMPACT
CompoSecure is spinning off Resolute Holdings and expanding its share repurchase program to $100 million. The spin-off is expected to be taxable and Resolute Holdings will have limited profitability in FY 2025.
The spin-off of Resolute Holdings is a significant corporate action for CompoSecure, potentially affecting its stock price due to the distribution of shares and the taxable nature of the transaction. However, the limited profitability of Resolute Holdings in FY 2025 may not have a strong positive impact on CompoSecure's valuation.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Resolute Holdings, a spin-off from CompoSecure, will begin trading on Nasdaq. The company is expected to have limited profitability in FY 2025.
Resolute Holdings' debut on Nasdaq as a spin-off from CompoSecure is a notable event. However, its limited profitability forecast for FY 2025 suggests a neutral short-term impact on its stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80