Why Did Unitronix Corp. (NASDAQ:UTRX) Soar 76% On Wednesday?

Following the announcement about a share buyback program on Wednesday, the Unitronix Corp. (NASDAQ:UTRX) stock went on a tear and soared by 76% to end the session at $0.07.

What happened?

The company announced that recently its management had approved a proposal for a share buyback program, which would also include measures to reduce the number of authorized shares. The company noted in its news release that the move was a demonstration of Unitronix Corp’s commitment towards boosting shareholder value.

Key Details

As part of its current restructuring program, the company’s share buyback program authorized Unitronix Corp. to pick up a maximum of 100,000,000 shares of its common stock through the rest of 2024. Along with the reduction in the number of authorized shares, the Unitronix Corp. management expressed confidence that the program would generate considerable engagement and growth for the company in its industry.

In the news release, it was also noted that the share buyback program had already been launched with the company buying back and then canceling 23 million shares. That led to a significant reduction in the number of outstanding shares. The company also announced that the buyback program would be funded through cash generated through business operations, case in hand, and possibly some accretive financing. The current outstanding share would be cut down by 40% if the Unitronix Corp. management can hit its target.

Management Quote

“The commencement of our share buyback program, the reduction in authorized shares, and the Crypto Investment Portfolio Strategy mark pivotal moments for Unitronix,” said Kenneth J. Williams, Chief Executive Officer of Unitronix. “These actions reflect our confidence in the company’s ongoing success and our commitment to returning value to our shareholders while pursuing innovative growth opportunities.”