CPI Card Group Announces Share Purchase Agreement with Majority Shareholder Parallel49 Equity ULC

CPI Card Group Inc. (Nasdaq: PMTS) (“CPI” or the “Company”), a payment technology company and leading provider of credit, debit and prepaid solutions, today announced that it has entered into an agreement to purchase shares of the Company’s common stock from Tricor Pacific Capital Partners (Fund IV) US, LP, a fund managed by Parallel49 Equity ULC (“Parallel49”), under the Company’s previously announced $20 million share repurchase authorization.

Pursuant to the agreement, the Company has agreed to purchase from Parallel49, and Parallel49 has agreed to sell to the Company, a number of shares equal to three times the number of shares acquired by the Company in the open market from non-Parallel49 holders from time to time during the period December 11, 2023 through March 31, 2024, up to a maximum of 325,000 shares. The purchase price for the shares to be acquired from Parallel49 will be equivalent to 98% of the volume weighted average purchase price of shares bought by the Company in the open market from non-Parallel49 holders during that time period, with settlement occurring within five days of the end of the period. The agreement has been approved by the Audit Committee of the Board of Directors of the Company.

“CPI is an outstanding company that we have been invested in for more than 15 years,” said Rod Senft, Chairman, Tricor Pacific Capital and Founder and Investment Committee Member of Parallel49 Equity. “We remain a big supporter of the Company and believe this agreement benefits both CPI shareholders and Parallel49 investors.”

Parallel49 currently owns 6.6 million shares of CPI common stock, or approximately 57% of CPI’s outstanding common stock. CPI purchasing shares from Parallel49 at a 3 to 1 ratio to open market purchases would maintain or reduce the Parallel49 ownership percentage in CPI and minimize the share repurchase impact on CPI’s public float.

“We believe repurchasing shares in the current environment is a great investment for our shareholders, and this agreement allows us to structure the repurchase program to enhance our equity profile,” said Jeff Hochstadt, Chief Financial Officer of CPI Card Group.

The Company and Parallel49 may enter into similar agreements in the future, consistent with the Company’s share repurchase authorization. The Company has an existing authorization to purchase up to $20 million of its common stock through open market purchases and privately negotiated transactions, expiring on December 31, 2024.