Volcon authorizes $2 million stock buyback

AUSTIN, TX - Volcon ePowersports (NASDAQ:VLCN), an electric vehicle provider, announced Monday a new share repurchase program approved by its Board of Directors. The program, effective immediately, permits the repurchase of up to $2 million of the company’s common stock until March 7, 2026. According to InvestingPro data, the stock is currently trading at significant discounts, with a price-to-book ratio of just 0.09x, suggesting potential value opportunity. The stock’s RSI indicates oversold conditions, one of several key insights available through InvestingPro’s comprehensive analysis tools.

The move comes as a signal of confidence from the company in its long-term strategy, following the launch of new products such as the HF1 and MN1 Tradesman UTVs, and the MN1 Adventurer golf cart. CEO John Kim remarked on the transition to these new offerings and the establishment of golf cart distribution agreements as key drivers for this decision.

With $19.1 million in unrestricted cash as of last Monday and anticipated operational cash flow, Volcon expects to have sufficient funds to sustain its operations into 2026. InvestingPro analysis shows the company maintains a healthy current ratio of 2.07, with more cash than debt on its balance sheet. However, the data also indicates rapid cash burn rates, making financial monitoring crucial. The repurchase program allows the company to buy back shares at its discretion, considering market conditions and legal requirements, including those under Rule 10b-18 of the Securities Exchange Act of 1934.

However, Volcon is not obligated to repurchase any specific number of shares and may adjust, suspend, or discontinue the program based on its discretion.

Volcon, headquartered in the Austin area, is recognized as the first all-electric powersports company. It has been producing electric vehicles aimed at the outdoor community, known for their quality and sustainability. The company’s product lineup includes motorcycles and UTVs, with its initial offering, the Grunt, having shipped to customers since late 2021. The Brat, Volcon’s entry into the eBike market, is currently being delivered to dealers across North America.

This share repurchase authorization is based on a press release statement from Volcon and reflects the company’s current financial position and market strategy. Despite showing revenue growth of 41.15% in the last twelve months, the company’s market capitalization stands at just $0.46 million, reflecting significant share price declines over the past year. The company has made forward-looking statements regarding its future operations and share repurchase plans, which are subject to various risks and uncertainties. These statements are predictions based on current expectations and may differ materially from actual future events. Volcon does not commit to updating any forward-looking statements post-release. For deeper insights into Volcon’s financial health and growth prospects, investors can access over 15 additional exclusive ProTips and comprehensive financial metrics through InvestingPro.

In other recent news, Volcon, Inc. has reported raising approximately $9.47 million through the sale of 1,831,558 shares of its common stock as part of an ongoing At-The-Market offering agreement with Aegis Capital Corp. This capital raise is part of Volcon’s broader strategy to finance its operations and growth initiatives. Additionally, Volcon has entered into a significant Supplier Agreement with Venom-EV to provide up to $3 million worth of products, with the arrangement including an equity component where Volcon will issue shares to Venom based on units purchased. This agreement is set to expire on June 30, 2026, or upon the sale of 5,000 units.

Moreover, Volcon has secured an exclusive distribution agreement with Super Sonic Company Limited to distribute Super Sonic’s golf carts in the United States. This partnership positions Volcon as the sole distributor and offers a competitive edge due to lower import tariffs on Vietnamese-made golf carts compared to those from China. The agreement includes a provision for Volcon to issue shares to Super Sonic based on the number of units ordered. If Volcon’s orders exceed 10,000 units, Super Sonic will be offered a board seat, subject to approvals.

Volcon’s strategic expansion into the golf cart market is further supported by a supply deal with Venom-EV, marking its move into this segment amid recent U.S. tariffs on Chinese-made golf carts. The company aims to leverage these partnerships to enhance its market presence and product offerings. These developments have been documented in recent SEC filings and press release statements, providing official confirmation of the agreements and financial maneuvers.

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