China Information Technology Inc.'s (CNIT: Quote) board has approved the termination of its stock purchase plan. At the same time, the company's chairman and chief executive, Jiang Huai Lin, adopted a new $2 million purchase plan. Also, Lin agreed to buy 1.08 million shares in a private transaction outside the purchase plan at a purchase price per share of $1.20.
The company has nearly 27.0 million shares outstanding, around 41.0% of which are currently held by Lin, excluding the pending acquisition of about 1.1 million shares.
Lin noted, "To reemphasize my commitment to the Company and my belief in its potentially strong future, I have decided to continue the increase in my equity holdings in the Company by reinitiating my purchases under our purchase plan and making a separate private purchase. At the same time, the termination of the Company's share repurchase plan will enable it to devote more resources to other priorities such as marketing and research and development."
The company said that the purchase plan may continue until September 2012 unless extended or shortened by the parties.
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by RTT Staff Writer
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