Strategic Share Repurchase Program

How the Dutch Auction Buyback Works

In a Dutch auction tender offer, shareholders bid at their preferred price within the set range. Arbutus will accept bids starting from the lowest price, working upward, until it reaches the US$230 million target Ontario Farmer. Shareholders don't need minimum bids to succeed — the company will buy however many shares it takes to hit that dollar amount.

Shareholders can submit multiple bids at different prices if they choose. The final buyback price gets set where demand meets the US$230 million cap. All accepted shareholders receive payment at that single clearing price, regardless of their individual bids Stratford Beacon Herald.

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Why Arbutus Is Buying Back Its Shares Now

Share buybacks let companies return cash to remaining shareholders while reducing the total number of shares outstanding. For Arbutus, this increases earnings per share without growing actual profits. The US$230 million price tag suggests the company has capital available but sees shares undervalued at current levels Edmonton Sun.

The company obtained exemptive relief from Canadian securities regulators, meaning it doesn't need to follow standard proportionate take-up rules that normally apply to Canadian-listed companies Montreal Gazette. This flexibility lets Arbutus structure the offer to maximize shareholder participation.

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No Financing or Minimum Share Requirements

Arbutus structured the offer with minimal conditions. The buyback doesn't depend on the company securing any financing. There's also no minimum number of shares the company must repurchase to proceed Mitchell Advocate. This gives Arbutus complete flexibility to walk away if share prices bid too high or if only a tiny portion of shareholders participate.

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Timeline and Next Steps for Shareholders

The tender offer begins August 24, 2026, and runs through September 29, 2026, unless the company decides to extend it. Shareholders wishing to participate must submit their bids during this window. Arbutus will announce the final clearing price and number of accepted shares shortly after the offer closes Stratford Beacon Herald.

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