Street Calls of the Week
CHARLOTTE, NC - FG Nexus Inc. (NASDAQ:FGNX, FGNXP), currently trading at $0.12 per share, announced Tuesday that its Board of Directors has approved a share repurchase program to acquire up to $200 million of the company’s outstanding common stock.
The open-ended program will allow the company to repurchase shares periodically in the open market and through negotiated transactions, according to a company press release. Any repurchases will be conducted in accordance with Rule 10b-18 of the Exchange Act and applicable laws and regulations.
"The Share Repurchase Program reflects our confidence in FG Nexus’s long-term prospects and our commitment to delivering value to shareholders," said Kyle Cerminara, CEO of FG Nexus. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 6.48, though it faces challenges with revenue performance.
The timing and amount of repurchases will depend on various factors, including market conditions, financial performance, and other investment opportunities. With a beta of 1.99, the stock shows significant volatility relative to the market. The company is not obligated to repurchase any specific number of shares and may suspend, modify, or discontinue the program at any time. For detailed valuation analysis and more insights, check out InvestingPro, which offers comprehensive financial metrics and expert recommendations.
FG Nexus describes itself as focused on becoming a significant corporate holder of ETH (Ethereum) and plans to stake and restake ETH to enhance yield. The company positions itself as a gateway into Ethereum-powered finance, including tokenized real-world assets and stablecoin yield.
The share repurchase announcement comes as companies often implement such programs when they believe their stock may be undervalued or to return capital to shareholders.
In other recent news, Fundamental Global Inc. has announced the appointment of two digital asset experts to its Board of Directors. Maja Vujinovic, currently the CEO of Digital Assets at FG Nexus, and Jose Vargas have joined the board, bringing significant experience in the field of cryptocurrencies and blockchain. Vujinovic has been recognized as an early pioneer in the industry, notably acquiring the first bank for Tether. Her previous role as CIO of Emerging Technologies at GE involved implementing institutional-grade finance transactions on blockchain as early as 2015. These appointments are part of FG Nexus’s ongoing focus on Ethereum acquisition and digital asset management. The inclusion of Vujinovic and Vargas is expected to enhance the company’s strategic direction in these areas. This development highlights FG Nexus’s commitment to strengthening its leadership team with expertise in digital assets.
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