On the heels of a stock fiasco that has seen its share price plummet in recent days, Monster Beverage Corp. has authorized an additional $250 million repurchase of its outstanding common stock. Monster’s announcement today appears to be an attempt to stem the tide after revealing last week that its second quarter earnings came up slightly short of analyst expectations and – of perhaps even greater worry for investors – the company’s disclosure that it had received a subpoena from an unnamed state attorney general. Monster stated that the subpoena is “concerning the Company’s advertising, marketing, promotion, ingredients, usage and sale of its Monster Energy brand of energy drinks.”
Here is Monster’s press release announcing the additional stock repurchase:
CORONA, Calif., Aug. 13, 2012 (GLOBE NEWSWIRE) — Monster Beverage Corporation (Nasdaq:MNST) today announced that its Board of Directors has authorized an increase in its share repurchase program to repurchase an additional $250 million of its outstanding common stock. As of August 13, 2012, the total amount available under the authorization is $500 million. The Company expects the share repurchases to be made from time to time in the open market or through privately negotiated transactions, or otherwise, subject to applicable laws, regulations and approvals. The timing of the share repurchases will depend on a variety of factors, including market conditions, and share repurchases may be suspended or discontinued at any time.
About Monster Beverage Corporation
Based in Corona, California, Monster Beverage Corporation is a marketer and distributor of energy drinks and alternative beverages. The Company markets and distributes Monster Energy(R) brand energy drinks, Monster Energy Extra Strength Nitrous Technology(R) brand energy drinks, Java Monster(R) brand non-carbonated coffee + energy drinks, X-Presso Monster(R) brand non-carbonated espresso energy drinks, M3(R) Monster
Energy(R) Super Concentrate energy drinks, Monster Rehab(R) non-carbonated rehydration energy drinks, & Ubermonster(TM) energy drinks, Worx Energy(R) shots, and Peace Tea(R) iced teas, as well as Hansen’s(R) natural sodas, apple juice and juice blends, multi-vitamin juices, Junior Juice(R) beverages, Blue Sky(R) beverages, Hubert’s(R) Lemonades, Vidration(R) vitamin enhanced waters, and PRE(R) Probiotic drinks. For more information visit www.monsterbevcorp.com.