Gorilla Announces Share Buyback Of Up To $6M, Says "This Initiative Comes In Response To The Sharp Decline In The Company's Market Cap From ~$650M To $35M, In Spite Of Our Strong Business Performance"
Portfolio Pulse from Benzinga Newsdesk
Gorilla Technology Group Inc. (NASDAQ:GRRR) has announced a share buyback program of up to $6 million to address the sharp decline in its market cap from $650 million to $35 million. The company plans to repurchase 1.1 million shares within the next five business days, aiming to realign its stock price with its intrinsic value.
September 12, 2024 | 12:05 pm
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Gorilla Technology Group Inc. is initiating a $6 million share buyback to counteract a significant drop in market cap, aiming to realign its stock price with intrinsic value. The buyback involves repurchasing 1.1 million shares in the next five days.
The share buyback is a direct response to the sharp decline in Gorilla's market cap, indicating management's confidence in the company's intrinsic value. This action is likely to positively impact the stock price in the short term as it reduces the number of shares outstanding, potentially increasing earnings per share and signaling to the market that the stock is undervalued.
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