Intel stock spikes after report of possible US government stake
LOS ANGELES - Ispire Technology Inc. (NASDAQ: ISPR), a company specializing in vaping technology and precision dosing with a market capitalization of $252 million, has initiated a stock repurchase program. The Board of Directors has authorized the repurchase of up to $10 million of its common stock over the next 24 months, as the stock trades near its 52-week low of $4.35.
Co-Chief Executive Officer Michael Wang expressed the move as a reflection of the company's confidence in its growth and strategic investments, aimed at positioning Ispire for future success. Wang highlighted the company's improved margins as a catalyst for starting to return capital to shareholders, despite a current gross profit margin of 20.6%. He also indicated that the current market conditions present a favorable opportunity to repurchase shares at what the company perceives as a significant discount to their intrinsic value. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt, though analysts expect net income to decline this year.
The repurchase strategy includes acquiring shares through open market transactions, accelerated share buyback programs, tender offers, private transactions, or other means, potentially under a Rule 10b5-1 trading plan. The timing and volume of repurchases will be at the discretion of the board, contingent on market conditions, stock price, legal requirements, and other factors. The program is not bound by a fixed expiration date and can be paused, altered, or halted without notice. With revenue growth of 12.8% in the last twelve months, InvestingPro subscribers can access additional insights and 8 more ProTips about Ispire's financial health and growth prospects.
Ispire is engaged in the research, development, and distribution of e-cigarettes and cannabis vaping products, with over 400 patents globally. The company's e-cigarette products, sold under the Aspire brand, are available worldwide except in the U.S., China, and Russia. Ispire also offers cannabis vaping hardware in the U.S., Europe, South Africa, and has recently expanded marketing efforts to Canada and Latin America. The company generated revenue of $148.4 million in the last twelve months, though it currently operates at a loss with negative EBITDA of $17.6 million.
The information in this article is based on a press release statement from Ispire Technology Inc. It should be noted that forward-looking statements in the release are not guarantees of future performance and are subject to risks and uncertainties. The company's actual results may differ materially from those projected in the forward-looking statements.
In other recent news, Ispire Technology Inc. has announced a change in its independent registered public accounting firm from Marcum LLP to CBIZ (NYSE:CBZ) CPAs P.C., following Marcum's resignation. The transition was approved by the Audit Committee of Ispire Technology's Board of Directors and is set to take effect immediately for the fiscal year ending June 30, 2025. Despite material weaknesses in its internal control over financial reporting, the company maintains a healthy current ratio of 1.13 and holds more cash than debt on its balance sheet.
On the regulatory front, Ispire Technology and IKE Tech LLC have reported a successful meeting with the FDA regarding their Age Verification technology for electronic nicotine delivery systems. The FDA has acknowledged the potential of accepting a Pre-Market Tobacco Product Application for this technology, which may receive priority review.
In terms of global expansion, Ispire has entered partnerships with ANDS, a Dubai-based distributor, and the lifestyle brand Hidden Hills Club. These partnerships aim to commercialize Ispire's nicotine portfolio across the Middle East, North Africa, and worldwide.
Roth/MKM has maintained a Buy rating on Ispire Technology shares, indicating potential for increased revenue from these global expansion efforts and the introduction of new vaping devices. Lastly, Ispire Technology has strengthened its executive leadership team with the appointment of Jim McCormick (NYSE:MKC) as the new Chief Financial Officer. These are some of the recent developments in Ispire Technology Inc.
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