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Empery Digital Inc. (NASDAQ:EMPD), a motor vehicles manufacturer with a market capitalization of $360 million, announced Thursday that its distribution agreement with Super Sonic Company Limited was terminated, according to a statement filed with the Securities and Exchange Commission. The news comes as the company’s stock has experienced significant volatility, with shares down over 78% year-to-date according to InvestingPro data.
The company reported that it received a notice of termination from Super Sonic, effective immediately, ending the agreement originally signed on January 31, 2025. Under the agreement, Empery Digital had served as the exclusive distributor of certain Super Sonic golf cart products in the United States. This development adds to the company’s challenges, as InvestingPro analysis indicates the company is currently operating with negative EBITDA of $23.29 million.
The termination was carried out under Section 2.01 of the agreement, which allowed Super Sonic to end the contract if Empery Digital failed to meet minimum purchase requirements for two consecutive months. Empery Digital stated that it is not subject to any early termination penalties as a result of this action.
Prior to the termination, the agreement would have required Empery Digital to issue 1% of its outstanding common stock for each 1,000 units ordered in 2025, up to a maximum of 7,000 units. The agreement also included a provision that would have granted Super Sonic a seat on Empery Digital’s board of directors if orders reached 10,000 units before February 1, 2026. With the termination, Empery Digital is no longer obligated to issue equity to Super Sonic under these terms.
Empery Digital, incorporated in Delaware and headquartered in Round Rock, Texas, operates in the motor vehicles and passenger car bodies sector. The company’s common stock trades on the NASDAQ under the symbol EMPD.
This information is based on a press release statement included in the company’s recent SEC filing.
In other recent news, Empery Digital Inc. has been actively involved in its share repurchase program, buying back over 2.5 million shares at an average price of $7.26 per share and an additional 1.6 million shares at $7.23 per share. These repurchases are part of a $100 million share buyback initiative, with approximately $88 million still available for future transactions. Additionally, Empery Digital has secured a $25 million borrowing facility to support these repurchases and anticipates adding another $75 million through an uncommitted facility. On the cryptocurrency front, Empery Digital has expanded its bitcoin holdings by acquiring 13 bitcoin for $1.5 million and an additional 17.51 bitcoin for $2 million, bringing its total holdings to approximately 4,065 BTC. The company’s total investment in bitcoin stands at around $478 million, with an average purchase price of $117,549 per bitcoin. These developments reflect Empery Digital’s strategic focus on both enhancing shareholder value and expanding its cryptocurrency portfolio.
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