In a strategic move aimed at fortifying shareholder value, Ault Alliance Inc has announced its intention to activate a stock repurchase program, signaling confidence in the company’s trajectory. Following the announcement the stock of Ault Alliance is trading in extremely high volume.
At the time of this publication, Ault Alliance Inc stock (AULT) has witnessed a surge.
Ault Alliance Inc
Current Price: $0.59
Change : +0.18
Change (%): (43.84%)
Volume: 57.4M
Source: Tomorrow Events Market Data
The diversified holding company, under the stewardship of Milton “Todd” Ault III, Founder and Executive Chairman of Ault Alliance, disclosed that it plans to utilize the stock repurchase program previously authorized by its Board of Directors in December 2021. The program, set to commence no earlier than two business days after the filing of the Form 10-Q for the quarter ending March 31, 2024, is anticipated to play a pivotal role in the company’s capital allocation strategy.
With authorization to repurchase up to $50 million of common stock, Ault Alliance Inc is poised to exercise discretion in executing repurchases through various methods, including open market transactions. This move aligns with the company’s commitment to enhancing shareholder value and capitalizing on perceived undervaluation in its common stock.
The implementation of a trading plan, compliant with Rule 10b5-1 of the Securities Exchange Act of 1934, is indicative of Ault Alliance Inc’s meticulous approach to navigating regulatory requirements while optimizing repurchase opportunities. This plan affords the company flexibility to execute trades during periods where trading may otherwise be restricted, ensuring strategic alignment with market conditions.
Milton “Todd” Ault III, expressed confidence in the Repurchase Program, citing it as a prudent utilization of capital resources. He highlighted the Company’s unwavering belief in the undervaluation of its common stock and reiterated management’s commitment to enhancing shareholder returns.
“While the Company has explored methods previously to buy back common stock from stockholders, including the exchange offers announced in March 2023 and November 2023, the Company ultimately determined that the most efficient way to execute a buyback program was to work through its existing and approved share repurchase program of up to $50 million worth of common stock,” stated Milton “Todd” Ault III.
The Repurchase Program, slated to expire on December 15, 2024, underscores Ault Alliance Inc’s proactive stance in capital management, reinforcing its dedication to maximizing shareholder value. With a focus on leveraging excess cash flow from operations and potential future borrowings, the company aims to execute the program judiciously, mitigating risks and capitalizing on favorable market conditions.
As Ault Alliance Inc embarks on this strategic initiative, investors await further developments, anticipating the impact of the stock repurchase program on the company’s financial performance and shareholder returns.
