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NEW YORK - CEA Industries Inc. (NASDAQ:BNC), a corporate holder of BNB cryptocurrency and currently trading at $9.69, announced Monday that its Board of Directors has authorized a stock repurchase program of up to $250 million of the company’s common stock. According to InvestingPro analysis, the stock appears undervalued despite falling 41% in the past week.
The company stated that repurchases may be made through open market purchases, privately negotiated transactions, or other means permitted under applicable securities laws. The timing and amount of repurchases will depend on market conditions, share price, and trading volume. With a market capitalization of $8.15 million and a current ratio of 4.17, the company maintains strong liquidity to support its buyback initiative.
"This buyback program reflects our confidence in the long-term value of CEA Industries and our conviction in BNB, which is trading near all time highs," said David Namdar, CEO of CEA Industries, in a press release statement. The company’s revenue has shown promising growth of 24% over the last twelve months, and analysts expect continued growth in the coming year. Get more detailed analysis and 10+ additional investment insights with InvestingPro.
The company is not obligated to repurchase any specific number of shares, and the program may be suspended or discontinued at any time, according to the announcement.
CEA Industries describes itself as a growth-oriented company focused on building category-leading businesses in consumer markets, including building and managing a corporate treasury of BNB cryptocurrency.
The stock repurchase program aims to provide support to the market and optimize capital allocation, according to the company’s statement. The company indicated that it intends to act when its shares trade below what it considers intrinsic value, with the goal of enhancing net asset value per share.
In other recent news, CEA Industries Inc. reported several significant developments. The company announced it has entered into a $50 million at-the-market equity offering agreement with Cantor Fitzgerald & Co. This arrangement permits CEA Industries to sell shares of its common stock through the sales agent, with Cantor Fitzgerald earning a commission on the sales. Additionally, CEA Industries has expanded its Binance Coin (BNB) holdings, purchasing an additional 30,000 BNB tokens valued at approximately $26 million, increasing its total holdings to 418,888 BNB. This acquisition aligns with the company’s goal of owning 1% of BNB’s total supply by the end of 2025.
Furthermore, CEA Industries filed a shareholder letter with the SEC, updating on its operations and detailing a recent private investment in public equity (PIPE) transaction and a warrant transaction. The company also announced a change in its board of directors, with Russell Read appointed following the resignation of Alexander Monje. Monje’s resignation was not due to any disagreement with the company. These developments reflect CEA Industries’ ongoing strategic initiatives and corporate governance adjustments.
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