CPI Card Group Chairman And Tricor Family Office Purchase 2.1M Shares From Parallel49 In Private Deals

CPI Card Group Inc. (NASDAQ:PMTS) ("CPI" or the "Company"), a payments technology company and leading provider of payment cards and related digital solutions, today announced that Tricor Pacific Capital Inc. (the "Tricor Family Office") has purchased 1.9 million shares of CPI common stock and H. Sanford (Sandy) Riley, Chairman of the Board of CPI, has purchased 0.2 million shares of CPI common stock from the Company's significant stockholder, Parallel49 Equity, ULC ("Parallel49"), in privately negotiated transactions.

Following these transactions, Parallel49's ownership position in CPI common stock has been reduced from 4.8 million shares (approximately 42% of shares outstanding) to 2.7 million shares (approximately 24% of shares outstanding). Parallel49 originally invested in CPI in 2007 and retained ownership of nearly 60% of outstanding shares following CPI's IPO in 2015.

The Tricor Family Office has been an indirect investor in CPI for nearly 20 years through an investment in the Parallel49 funds. In October 2024, the Tricor Family Office initiated a direct position in CPI common stock with a purchase of 0.25 million shares in a secondary offering of CPI shares enacted by Parallel49. Following today's announced transaction, the Tricor Family Office increased its direct ownership of CPI common stock to 2.2 million shares, or nearly 20% of shares outstanding.

Pursuant to the transactions, CPI's Board of Directors has approved the grant of share registration and director nomination rights to the Tricor Family Office. The Tricor Family Office and H. Sanford Riley have also entered into lock-up agreements with the Company, restricting the sale or disposal of shares acquired in this transaction for a one-year period from the date of the agreement.