Velocity Express managers making $1 million-plus investment
Velocity Express Corp., a Westport, Conn.-based company specializing in time definite deliveries, said members of management will purchase one million shares of its treasury common stock at the greater of $1.10 per share or the market price on the day prior to the purchase date.
“Management’s purchase of shares at a level well above the current market price is obviously a vote of confidence in the future success of Velocity,” said Vince Wasik, Velocity Express chairman and chief executive officer, as he announced the plan.
The company’s stock rose sharply after the announcement from its opening price of 67 cents to more than 90 cents per share.
The company’s stock reached a 52-week high of $2.16 per share last summer after it acquired a competitor, CD&L, but then has gradually eroded and fell to under a dollar last month.
Velocity Express said it expected to receive the proceeds of the sale over the next several weeks, and purchases will be subject to the company and the purchasers entering into customary documentation.
“Velocity is poised to deliver improved EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) and working capital, and management as well as our advisors have expressed considerable interest and enthusiasm in participating more actively in the potential for equity appreciation,” Wasik said.