Item 8.01. Other Events
Share Repurchase Plan
On January 24, 2022, Argan, Inc. ("Argan" or the "Company") announced that its
Board of Directors approved an increase in the Company's existing share
repurchase program, from $25 million to $50 million, to acquire shares of the
Company's Common Stock. The Company has repurchased shares at a cost of
approximately $18 million under the authorization to-date.
Development Investment Impairment
In 2018, the Company was deemed to be the primary beneficiary of a variable
interest entity ("VIE") that is performing project development activities
related to the planned construction of a new natural gas-fired power plant, and
has since included the activities of the VIE in its consolidated financial
statements. The Company has provided engineering and financial support to the
project totaling $7.5 million, including development costs incurred by the
project VIE. Recovery of the Company's investment has been predicated on the
successful completion of all project development efforts, of which the most
significant current hurdle has been establishment of a fuel-supply source for
the plant. The Company has determined that it will not provide additional
financial support to develop the project. Lack of progress on fuel supply issues
has significantly diminished the likelihood of the project to achieve its
remaining development milestones including the arrangement of financing for the
project. Accordingly, the Company will record a pre-tax impairment loss related
to the investment in an amount estimated to range between $6.5 million to $8.3
million in January 2022, of which approximately $2.0 million is attributable to
its consolidated VIE.
Item 9.01. Financial Statements and Exhibits.
(d)Exhibits
Exhibit No. Description
99.1 Press Release issued by Argan on January 24, 2022
104 Cover Page Interactive Data File (formatted as inline XBRL and
contained in Exhibit 101)
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