Business
U.S. Global Investors Continues Share Repurchases in February and Provides Update on Financial Statements
San Antonio, TX, March 06, 2023 (GLOBE NEWSWIRE) -- U.S. Global Investors, Inc. (NASDAQ: GROW) (the “Company”), a registered investment advisory firm with
About this update from U.s. Global Investors, Inc.
[{"type":"text","content":"San Antonio, TX, March 06, 2023 (GLOBE NEWSWIRE) -- U.S. Global Investors, Inc. (NASDAQ: GROW) (the “Company”), a registered investment advisory firm with longstanding experience in global markets and specialized sectors, today is pleased to announce that it repurchased 34,502 of its own shares in February 2023, at a net cost of about $108,000. In December 2022, the Board of Directors (the “Board”) agreed to modify the Company’s buyback algorithm; the Company may now buy back shares of GROW stock when the price is flat or down from the previous trading day. “In his most recent annual shareholder letter, Warren Buffett discusses the value of share repurchases so long as they’re made at ‘value-accretive prices.’ When shares are bought back at attractive prices, Buffett writes, they can benefit all shareholders, not just the biggest shareholders,” says Frank Holmes, the Company’s CEO and Chief Investment Officer. “Like Buffett, we seek to create value for all GROW shareholders, and our recently enhanced share buyback program is designed to do just that.” Non-Cash Restatements In addition, the Company announces that it will make non-cash restatements of its consolidated financial statements and related disclosures for the fiscal year ended June 30, 2022, and for the three months ended September 30, 2022, before it files its financial statements for the quarter ended December 31, 2022. As was noted in a previous press release, the Company did not file its financial statements for the most recent quarter due to the Company’s need for additional time to determine the fair value of certain securities held as corporate investments. When determining the fair value of those securities, the Company discovered that they were measured inaccurately in financial statements for the year ended June 30, and period ended September 30, 2022. \"The December 31, 2022, valuation analysis of investments led to the discovery of an error in a third party’s fair value calculations of our warrants and in the complex binomial option pricing model for our convertible debenture. This error is a non-cash restatement and will not affect the Company’s operating revenue or cash flow provided by operating activities,” says Mr. Holmes. “The warrants and convertible debenture we hold as corporate investments are complex instruments, and the valuation method can be eq...