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Sangoma Exceeds FY25 Debt Reduction Targets Ahead of Plan and Launches Normal Course Issuer Bid
Sangoma Achieves Key Financial Milestone as part of its Capital Allocation Strategy and Initiates...
About this update from Sangoma Technologies Corporation
[{"type":"text","content":"Sangoma Exceeds FY25 Debt Reduction Targets Ahead of Plan and Launches Normal Course Issuer Bid\n\n\n .bwalignc { text-align: center; list-style-position: inside }\n \n\n\n\n\n\n Sangoma Achieves Key Financial Milestone as part of its Capital Allocation Strategy and Initiates Normal Course Issuer Bid to Enhance Shareholder Value\n \n\n\n\n\n\n Sangoma Technologies Corporation (TSX: STC; Nasdaq: SANG) (“Sangoma” or the “Company”), a trusted industry leader uniquely offering businesses a choice of on-premises, cloud-based, or hybrid Communications as a Service solutions, announced today that following the accelerated achievement of its previously announced debt reduction targets under its capital allocation strategy, the Company is launching a Normal Course Issuer Bid (the “NCIB”) with respect to its common shares (the “Shares”).\n \n\n On March 24, 2025, the Company issued an irrevocable notice for an additional $2.9 million debt repayment under its credit facility, bringing the total repayments for the third quarter to approximately $7.3 million. This includes the full repayment of the Company’s Term Loan 1, reducing total debt to approximately $53 million at the end of Q3. With this milestone, Sangoma has surpassed its previously announced Fiscal 2025 capital allocation target of reducing debt to $55-$60 million well ahead of schedule.\n \n\n Capitalizing on the consistent operating cash flow generated by the business, Sangoma remains committed to strengthening its balance sheet to support future acquisitions, drive long-term profitable growth, and allocate capital efficiently. With the successful acceleration of our debt reduction strategy, we are now in a strong position to continue to return value to shareholders. The Company believes that the current market price of our shares presents an attractive opportunity given the company’s strong fundamentals and long-term growth potential. As such, the Board has authorized the Company to proceed with a NCIB as a prudent and strategic use of capital. This buyback program reflects our confidence in the Company’s future while ensuring we maintain the financial flexibility to continue accelerating the Company’s strategic alternatives as disclosed in its last earnings release. The timing and amount of re...