– Keeping Investors Informed while Navigating the Rule 10b-18 safe harbor and IPO Timing for Share Repurchase –
MIAMI BEACH, FL / ACCESSWIRE / September 5, 2023 / LQR House Inc. (the “Company” or “LQR House”) (NASDAQ:LQR), a visionary marketing company focused on becoming a prominent force in the alcoholic beverage sector, reiterates its commitment to repurchase up to 20% of the company’s free-float (based on the closing share price September 1, 2023), in line with the announcement made on August 26, 2023. On August 28th, 2023, the Company initiated an agreement with Dominari Securities LLC (“Dominari”) to execute the share buyback program. The program is anticipated to begin around September 8th, 2023.
Within the share buyback program framework, repurchases may occur periodically through open market transactions and privately negotiated acquisitions, all in adherence to Rule 10b-18 under the Securities Exchange Act of 1934, as amended. Dominari will possess exclusive discretion in determining the timing, volume, pricing, and method of acquiring securities during this period. It is important to note that the share buyback program does not impose a mandatory obligation on the Company to procure a specific quantity of common stock, and the program retains the flexibility to be halted or terminated at any point. The Company anticipates funding these purchases utilizing its existing cash reserves.
Rule 10b-18, established by the SEC, acts as a crucial safe harbor provision shielding companies and their affiliates during stock repurchases. It safeguards against market manipulation liability under the Securities Exchange Act of 1934, provided it adheres to specific conditions, including not acquiring more than 25% of its average daily trading volume in a single day. For issuers who recently conducted an IPO, compliance with the Rule 10b-18 safe harbor requires waiting four weeks (September 7th, 2023) after securities trading commenced, before initiating any share purchases for the buyback.
Sean Dollinger, CEO of LQR House, underscored the company’s commitment to transparency and its proactive stance in launching the buyback initiative, remarking, “We recognize the excitement surrounding our share repurchase program, and LQR House is poised and eager to bring it to fruition. As a new entrant on the NASDAQ, we must adhere to the required four-week waiting period before initiating share purchases. Rest assured, as soon as this waiting period concludes, we will promptly notify everyone, allowing them to witness this significant milestone in real-time.”
About LQR House Inc.
LQR House is a dynamic and forward-thinking liquor marketing company that intends to become the full-service digital marketing and brand development face of the alcoholic beverage space. Currently, LQR House has a key partnership with Country Wine & Spirits Inc. (“CWS”), granting the company full control over all marketing operations on CWSpirits.com,a leading alcohol ecommerce platform. With a deep passion for the world of beverages, LQR House takes pride in curating marketing strategies aimed to elevate brands to new heights. Composed of a team of seasoned professionals, LQR House focuses on crafting marketing solutions tailored to each client’s unique needs. Through strategic partnerships, creative branding, and digital prowess, LQR House intends to be at the forefront of the wine and spirits marketing landscape, making it the go-to choice for brands seeking to thrive in a competitive industry.
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Shareholders can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and the completion of the initial public offering on the anticipated terms or at all, and other factors discussed in the “Risk Factors” section of the registration statement on Form S-1 filed with the SEC. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement on Form S-1 and other filings with the SEC. Additional factors are discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov.
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