Quarterly report pursuant to Section 13 or 15(d)

Note 14 - Shareholders' Equity

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Note 14 - Shareholders' Equity
 6 Months Ended
Jun. 30, 2023
Notes to Financial Statements  
Equity [Text Block]

14. SHAREHOLDERS’ EQUITY

 

Common stock 

 

On October 13, 2022, in connection with the closing of the Arrangement, (i) the total number of authorized shares of common stock of the Company was increased from 100 million shares to 160 million shares and (ii) VAALCO issued approximately 49.3 million shares to TransGlobe's shareholders.

 

Preferred stock 

 

Authorized preferred stock consists of 500,000 shares with a par value of $25 per share. No shares of preferred stock were issued and outstanding as of June 30, 2023.

 

Treasury stock

 

On November 1, 2022, the Company announced that the board of directors formally ratified and approved a share buyback program. The Plan provides for an aggregate purchase of currently outstanding common stock up to $30 million over up to 20 months. Payment for shares repurchased under the share buyback program will be funded using the Company's cash on hand and cash flow from operations. See Note 10 for further discussion.

 

The below table shows the repurchases of the Company's equity securities during the three months ended June 30, 2023:

 

Period

  

Total Number of Shares Purchased

    

Average Price Paid per Share

    

Total Number of Shares Purchased as Part of Publicly Announced Programs

    

Maximum Amount that May Yet Be Used to Purchase Shares Under the Program

  

April 1, 2023 - April 30, 2023

     303,969     $ 4.94       303,969     $ 21,003,245  

May 1, 2023 - May 31, 2023

     362,843     $ 4.14       362,843     $ 19,502,740  

June 1, 2023 - June 30, 2023

     494,164     $ 4.05       494,164     $ 17,504,007  

Total

     1,160,976               1,160,976          

 

For the majority of restricted stock awards granted by the Company, the number of shares issued to the participant on the vesting date are net of shares withheld to meet applicable tax withholding requirements. In addition, when options are exercised, the participant may elect to remit shares to the Company to cover the tax liability and the cost of the exercised options. When this happens, the Company adds these shares to treasury stock and pays the taxes on the participant’s behalf.

 

Although these withheld shares are not issued or considered common stock repurchases under the Company’s stock repurchase program, they are treated as common stock repurchases in the Company's financial statements as they reduce the number of shares that would have been issued upon vesting. See Note 15 for further discussion.