Ault Alliance Anticipates Utilizing Previously Authorized $50M Common Stock Repurchase Plan; Shares Spike Higher
Portfolio Pulse from Benzinga Newsdesk
Ault Alliance, Inc. (NYSE:AULT) announced plans to utilize its previously authorized $50M common stock repurchase program, starting no earlier than two business days after filing its Form 10-Q for Q1 2024. The repurchases, aimed at enhancing stockholder value, will be made through a Rule 10b5-1 Plan allowing trading during blackout periods. The program, expiring on December 15, 2024, may be funded through excess cash flow, future borrowings, or financings. Shares repurchased will be returned to treasury, reducing public float. This follows the company's return to treasury of preferred and common stock in December 2023.
February 13, 2024 | 3:06 pm
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Ault Alliance plans to utilize a $50M stock repurchase program to enhance shareholder value, with repurchases starting after the Q1 2024 Form 10-Q filing. The program aims to reduce public float by returning shares to treasury.
The announcement of a stock repurchase program typically signals a company's confidence in its own undervalued stock and is often viewed positively by the market. By reducing the public float, the repurchase program can lead to an increase in the stock price in the short term due to the reduced supply of shares and the positive signal it sends about the company's financial health and future prospects.
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