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TruGolf Holdings, Inc. (NASDAQ:TRUG), currently trading at $0.21 per share with a market capitalization of $9.23 million, has reached an agreement with certain holders of its convertible notes and preferred stock to modify the terms of future conversions and increase the number of authorized shares. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment. The amendment, dated May 28, 2025, also allows the company to buy back up to $2 million of its common stock in open market transactions.
The holders agreed to a reduction in the number of shares TruGolf is required to reserve for the conversion of preferred stock. Additionally, they consented to an increase in authorized common stock shares for which the company will seek shareholder approval at a special meeting. Despite showing revenue growth of 8.4% in the last twelve months, InvestingPro data indicates the company is quickly burning through cash, with 13 additional key insights available to subscribers.
The buyback program, which permits the repurchase of shares up to an aggregate purchase price of $2 million, reflects the company’s confidence in its stock and a commitment to enhancing shareholder value.
The details of the agreement are outlined in the full text of the Amendment, which is attached as Exhibit 10.1 to the current report on Form 8-K filed with the SEC.
This strategic move comes as TruGolf Holdings continues to position itself for sustainable growth. The company, recognized as an emerging growth company, is navigating the competitive manufacturing sector with a focus on innovation and market expansion.
The information provided in this article is based on the latest SEC filing by TruGolf Holdings, Inc.
In other recent news, TruGolf Holdings, Inc. has been actively working to address its Nasdaq compliance issues. The company revealed a strategic plan to meet Nasdaq’s listing requirements, which includes converting dividends owed to founders into common stock and exchanging outstanding notes and warrants for preferred shares. TruGolf has also secured a $20 million Equity Line of Credit to provide liquidity without impacting shareholder equity, and a reverse stock split is under consideration. Additionally, TruGolf entered into an Equity Purchase Facility Agreement to sell up to $20 million of its Class A common stock to an institutional investor, contingent on stockholder approval. The company has converted its outstanding convertible notes into Series A Preferred Stock and eliminated approximately $9.3 million in debt, aiming to improve its capital structure. TruGolf plans to hold a special shareholders’ meeting to vote on the compliance plan and other financial maneuvers. These developments are being closely monitored by investors as TruGolf seeks to maintain its Nasdaq listing and enhance its financial flexibility.
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