Tag: Shoals Stock

Shoals Technologies Group, Inc. (NASDAQ: SHLS) shares are experiencing a notable rise on the US stock charts, following a favorable litigation ruling. As of the latest pre-market review, SHLS shares have surged by 27.06%, trading at $6.85. This uptick in stock price comes in the wake of a significant legal triumph for the company.

ITC Ruling in Favor of Shoals

The U.S. International Trade Commission (ITC) granted Shoals Technologies a positive ruling on August 30, 2024, in its patent infringement action against Voltage, LLC and its related foreign firm.

Voltage was found to have violated Section 337 of the Tariff Act of 1930 by bringing illegal LYNX trunk bus goods into the country, according to an Administrative Law Judge at the ITC. This decision establishes a standard for similar instances involving patent infringement in the future and supports Shoals’ stance on intellectual property rights.

New Patents will Enhance Intellectual Property Portfolio of SHLS

In addition to the legal victory, Shoals has recently been awarded two new patents for its Big Lead Assembly (BLA) technology—U.S. Patents 12,015,375 and 12,015,376. These patents complement the existing ‘153 patent (U.S. Patent 11,689,153) that was the subject of the ITC case. The new patents underscore Shoals’ ongoing commitment to innovation and its leadership in developing advanced solar panel connectors.

Future Legal and Market Implications

Should the ITC’s initial ruling be upheld, it will prevent the importation of photovoltaic connectors that infringe upon Shoals’ intellectual property. This decision aims to curb the distribution of unauthorized products, thus safeguarding American innovation and jobs. The ITC’s investigation is expected to conclude by late December, with a potential Presidential review in February 2025.

Once the ITC case is resolved, Shoals plans to proceed with its stayed District Court case against Voltage in North Carolina, seeking monetary damages. Shoals Technologies Group remains dedicated to protecting its intellectual property and investing in American manufacturing, reaffirming its commitment to fair competition and industry integrity.

An equity announcement has significantly impacted Shoals Technologies Group, Inc. (NASDAQ: SHLS), resulting in a notable rise in the company’s stock price during the current-market session. As of the latest update, SHLS shares surged by 5.65%, reaching $7.20 on the US stock charts. This increase followed the company’s announcement regarding a significant share repurchase program.

Shares Repurchase Approval

The buyback of up to $150 million worth of Shoals Technologies’ Class A ordinary shares has been approved. Repurchases may proceed via a variety of avenues with this permission, such as accelerated share repurchases, open market transactions, private placements, and other legal procedures.

The company will most likely use its available cash, free cash flow, and credit facility borrowings to fund the repurchase program. Through the implementation of this repurchase program, Shoals Technologies hopes to demonstrate to its board and investors that it has faith in the company’s long-term growth potential and business prospects.

Agreement For Accelerated Share Repurchase

Shoals Technologies engaged signed an Accelerated Share acquire (ASR) arrangement with Jefferies LLC to acquire $25 million of the company’s Class A ordinary shares in accordance with the share buyback authority. Based on the closing price of $6.81 per share on June 10, 2024, Shoals Technologies will initially receive around 2,202,643 shares of Class A common stock, or about 60% of the ASR’s notional value, as per the ASR rules.

During the ASR time, Shoals’ Class A common stock price will be modified for a pre-agreed discount and other parameters, and the daily volume-weighted average price will determine the ultimate number of shares repurchased under the ASR. By the third quarter of 2024, the ASR is expected to be completed but Shoals technology is exploring many options with its cash flow, including as strategic acquisitions, debt reduction, share repurchasing, and investments in innovative technology. A bigger portion of the company’s wealth generation strategy includes this repurchase program.