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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