CPI Card Group Inc. Announces Significant Investments from Chairman and Tricor Pacific Capital

In a series of privately negotiated transactions, the Tricor Family Office acquired 1.9 million shares of CPI common stock, while H. Sanford (Sandy) Riley, the Chairman of the Board, purchased an additional 0.2 million shares. These transactions were executed through Parallel49 Equity, ULC, CPI's significant stockholder, resulting in a substantial reduction of Parallel49's ownership from 4.8 million shares (approximately 42% of shares outstanding) to 2.7 million shares (approximately 24% of shares outstanding). Parallel49 has been a key investor in CPI since 2007 and had retained nearly 60% of the outstanding shares following CPI’s IPO in 2015.

The Tricor Family Office, which has been an indirect investor in CPI for nearly two decades through investments in Parallel49 funds, took a more direct approach in October 2024 by purchasing 0.25 million shares during a secondary offering. With the latest acquisition, the Tricor Family Office's direct stake in CPI has risen to 2.2 million shares, representing nearly 20% of the company's outstanding shares.

Rod Senft, Chairman of the Tricor Family Office, expressed his enthusiasm about this increased investment. "We are excited to materially increase our investment in CPI, as we believe the company provides significant opportunities and a promising growth trajectory," said Senft. He emphasized that this investment reinforces their commitment to CPI and its leadership team, highlighting their confidence in the company's strategic direction.

Sandy Riley, who has been a pivotal figure in CPI's leadership, also shared his thoughts on the recent transactions. "We are delighted to have Rod Senft and the Tricor Family Office’s expanded commitment to support the execution of CPI’s strategy. My increased personal investment also demonstrates my continued confidence in CPI’s future prospects," Riley stated.

John Lowe, President and CEO of CPI, welcomed the support from both the Tricor Family Office and Sandy Riley. He highlighted the importance of committed investors in providing greater clarity regarding the company's long-term ownership structure. "We believe this transaction will support our shareholders, as the purchase of these shares by committed investors helps provide greater clarity on our long-term ownership structure," Lowe remarked.

In light of these transactions, CPI’s Board of Directors granted share registration and director nomination rights to the Tricor Family Office. Additionally, both the Tricor Family Office and Sandy Riley have entered into lock-up agreements with the company, which will restrict the sale or disposal of the acquired shares for a one-year period.

As CPI Card Group continues to navigate the evolving landscape of payment technologies, these investments position the company for potential growth and expansion, particularly in digital solutions. The confidence shown by both the Chairman and Tricor Pacific Capital could serve as a catalyst for CPI as it seeks to diversify its business and enhance shareholder value.

This recent development not only reflects the stability of CPI’s management and ownership but also underscores the growing optimism surrounding the company’s strategic initiatives moving forward. Investors and market watchers will be keenly observing how these dynamics unfold in the coming months.