DLO - DLocal jumps 15% on $100M stock buyback plan proposed share purchases by shareholders

DLocal ( NASDAQ: DLO ) jumped 15% on Tuesday after the firm announced a $100M stock buyback plan and proposed share purchases by shareholders.

The buyback plan, which will expire on the earlier of July 2023 or when the buyback limit is reached, may be suspended or discontinued at any time.

Certain dLocal ( DLO ) shareholders informed the company that they expect to engage in open market transactions to acquire additional class A shares.

Shareholders include investment firm General Atlantic, dLocal co-founders Andres Bzurovski Bay and Sergio Enrique Fogel Kaplan, chairman Alberto Eduardo Azar, CEO Sebastián Kanovich, and president Jacobo Singer.

"These proposed share purchases attest to management's and key shareholders' confidence in dLocal's ( DLO ) current and future prospects," said CEO Kanovich.

The Uruguayan payment services provider also responded to allegations made in a report by short seller Muddy Waters Capital .

DLocal's ( DLO ) board requested management to conduct an internal review of the short seller's allegations. The audit committee's review of the claims is substantially complete.

The firm clarified that client funds were not used to make loans to senior leadership or pay dividends to shareholders.

It added that the short report's comparison of dLocal's ( DLO ) take rates/forex fees with other companies are "inaccurate and unsubstantiated".

Read why dLocal ( DLO ) is at high risk of performing badly, according to SA Quant .

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