Wholesale distributor BlueLinx Holdings announced the termination of its “at-the-market” equity offering program (ATM Offering) with Jefferies LLC as sales agent The company said it elected to terminate the ATM Offering given its ample liquidity and to limit uncertainty and unfavorable dilution for its shareholders.

BlueLinx initiated the 10-trading day termination process of the ATM Offering with Jefferies, with the official termination taking effect on September 2, 2021. BlueLinx will make no sales under the ATM Offering during this 10-trading day window.

In a separate press release, the building products distributor announced its board of directors authorized a new share repurchase program under which the company may repurchase up to $25 million of its outstanding shares of common stock in the open market, in accordance with all applicable securities laws and regulations.

BlueLinx’s decision to repurchase shares, as well as the timing of such repurchases, will depend on a variety of factors, including the ongoing assessment of the company’s capital needs, the market price of the company’s common stock, general market conditions, and other corporate considerations, according to the company. BlueLinx said the repurchase program may be suspended or discontinued at any time.

“BlueLinx is committed to a balanced capital allocation strategy designed to maximize total shareholder returns,” Dwight Gibson, president and CEO of BlueLinx, said in a news release. “Given the strong performance of our business during the past year, coupled with a favorable multi-year outlook for residential construction and home renovation markets, we believe our capital allocation strategy should prioritize a combination of organic growth investments, the acquisition of complementary assets in key targeted markets, and an opportunistic return of capital program. The approval by our board of directors of a new share repurchase authorization demonstrates confidence in our business, while providing management with another tool to optimize value creation.”

Marietta, Ga.-based BlueLinx has a distribution footprint serving 40 states and the company distributes its range of structural and specialty products to approximately 15,00 customers across the United States.