Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
SALT LAKE CITY - TruGolf Holdings, Inc. (NASDAQ: TRUG), known for its golf technology innovations, has announced a new stock repurchase program amid a challenging market environment that has seen its stock decline over 81% in the past year. The company’s Board of Directors has authorized the buyback of up to $2 million of its Class A common stock, representing approximately 22% of its current $9.2 million market capitalization. According to InvestingPro analysis, the stock is currently trading below its Fair Value.
Under the program, stock purchases can be made on the open market or through other methods as decided by TruGolf’s management, conforming to Securities and Exchange Commission regulations. Factors such as stock price, trading volume, and market conditions will influence the timing and volume of the repurchases.
Chris Jones, CEO of TruGolf, stated that the company’s solid capital position enables this initiative, which is aimed at bolstering shareholder value. However, the program will conclude once the $2 million threshold is reached, it is terminated, or it is otherwise completed.
TruGolf, a pioneer in golf technology, leverages AI for content creation and spatial analysis and offers gamified improvement plans for golfers. The company’s array of Hardware, Software, and Web Products is designed to simplify playing, improving, and enjoying golf.
It is important to note that some statements regarding the repurchase plan are forward-looking and subject to various risks and uncertainties. These include the timing and number of shares to be repurchased. TruGolf emphasizes that while these forward-looking statements reflect the company’s current expectations, actual results could differ materially.
Investors are advised that more detailed information about potential risks is available in the company’s filings with the SEC, including its Annual Report on Form 10-K and other periodic reports.
This stock repurchase program is based on a press release statement from TruGolf Holdings, Inc.
In other recent news, TruGolf Holdings has announced a series of strategic financial moves aimed at strengthening its financial position and meeting Nasdaq compliance standards. The company has initiated a stock repurchase plan, allowing it to buy back up to $2 million of its common stock, reflecting confidence in its stock and a commitment to enhancing shareholder value. Additionally, TruGolf has entered into an Equity Purchase Facility Agreement with an institutional investor, enabling the sale of up to $20 million of its Class A common stock, contingent upon stockholder approval. In a related move, the company has also secured a $20 million Equity Line of Credit to provide liquidity without impacting shareholder equity.
To meet Nasdaq’s listing requirements, TruGolf has proposed converting dividends owed to founders into common stock and exchanging outstanding notes and warrants for new preferred shares. The company has also swapped its outstanding convertible notes for Series A Preferred Stock, potentially bringing in $15.1 million in gross proceeds if new warrants are exercised. This debt-for-equity exchange will eliminate approximately $9.3 million in debt, improving TruGolf’s capital structure. These developments are part of TruGolf’s broader strategy to fortify its balance sheet and position the company for future growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.