Eterna Therapeutics Announces Up to $1 Million Stock Repurchase Program

Rhea-AI Summary

Eterna Therapeutics (Nasdaq: ERNA) has announced a stock repurchase program of up to $1 million of its outstanding common stock. The Board of Directors-authorized program allows repurchases through open market transactions, privately negotiated transactions, or other means in compliance with securities laws. The company's management will determine the timing and amount of repurchases based on market conditions, stock price, and other factors. The program has no set expiration date and can be suspended, modified, or discontinued at any time.

Positive

• Board authorization of $1 million stock buyback program indicates confidence in company's value
• Flexible repurchase program with no set expiration date allows strategic timing of purchases
• Program demonstrates commitment to enhancing shareholder value

Negative

• Relatively small buyback amount of $1 million may have impact on share price
• Program implementation depends on market conditions and may not be fully executed

Insights

Financial Analyst

The $1 million stock buyback program for a company with a $27.3 million market cap represents a significant 3.7% of market value. While buybacks typically signal management confidence, this program's impact may be given ERNA's small cap status and thin trading volume. The absence of a set timeframe and the discretionary nature of purchases ("may be made from time to time") suggests this is more of a flexible tool than a firm commitment. For a clinical-stage biotech, utilizing cash for buybacks rather than R&D or operations warrants scrutiny, especially considering the challenging market conditions for small-cap biotechs. The program's modest size relative to industry standards indicates it may serve more as a symbolic gesture than a material catalyst for share price appreciation.

CAMBRIDGE, Mass., Nov. 25, 2024 (GLOBE NEWSWIRE) -- Eterna Therapeutics, Inc. (Nasdaq: ERNA), a leader in cell therapies, today announced that its Board of Directors has authorized a stock repurchase program of up to $1 million of the company’s outstanding common stock. This program reflects the Board's confidence in the company’s long-term strategy and commitment to enhancing shareholder value.

Under the stock repurchase program, the repurchases may be made by the Company from time to time through open market transactions, privately negotiated transactions, or other means in accordance with applicable securities laws. The timing and amount of repurchases will be determined by the company’s management, taking into consideration market conditions, stock price, and other factors. The program does not have a set expiration date and may be suspended, modified or discontinued at any time without prior notice.

“This buyback program underscores our belief in Eterna Therapeutics’ trajectory,” says Sanjeev Luther, President and CEO. For more information, please visit https://www.eternatx.com/.

About Eterna Therapeutics Inc.
Eterna Therapeutics is a publicly traded, preclinical-stage company focused on using cutting-edge tools to deliver highly innovative, effective, and safe off-the-shelf cell therapies for the treatment of advanced solid tumors, with an initial emphasis on triple-negative breast cancer (TNBC) and platinum-resistant, TP53-mutant ovarian cancer. The company is currently focused on advancing its lead product ERNA-101, an induced allogenic mesenchymal stem cell (“iMSC”) product, designed to selectively deliver the pro-inflammatory cytokines IL-7 and IL-15 to the tumor microenvironment (TME) in order to drive significant anti-tumor immunity. ERNA-101 is built on the company's in-licensed core technology, which utilizes a best-in-class approach to engineer allogenic iPSCs to express genes of interest and to efficiently differentiate these cells into iMSCs. For more information, please visit https://www.eternatx.com/.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, in some cases, can be identified by terms such as "believe," "may," "will," "estimate," "continue," "anticipate," "design," "intend," "expect," "could," "plan," "potential," "predict," "seek," "should," "would," "contemplate," "project," "target," "objective," or the negative version of these words and similar expressions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Eterna's actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by the forward-looking statements in this press release, including, without limitation, risks and uncertainties related to if and when the Company will repurchase the stock authorized by its Board and the impact of the buyback program to the Company and its shareholders. Forward-looking statements are based upon Eterna's current expectations and involve assumptions that may never materialize or may prove to be incorrect. All forward-looking statements are expressly qualified in their entirety by these cautionary statements. For a detailed description of Eterna's risks and uncertainties, you are encouraged to review its documents filed with the SEC including its recent filings on Form 8-K, Form 10-K and Form 10-Q. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they were made. Eterna does not undertake any obligation to update the forward-looking statements contained herein to reflect events that occur or circumstances that exist after the date hereof, except as required by applicable law.

Investor Relations Contact:

investors@eternatx.com

FAQ

How much is Eterna Therapeutics (ERNA) stock buyback program worth?

Eterna Therapeutics has authorized a stock repurchase program worth up to $1 million of its outstanding common stock.

When does Eterna Therapeutics (ERNA) stock buyback program expire?

The stock repurchase program has no set expiration date and can be suspended, modified, or discontinued at any time without prior notice.

How will Eterna Therapeutics (ERNA) implement its stock buyback program?

The company may make repurchases through open market transactions, privately negotiated transactions, or other means in accordance with securities laws, with timing and amount determined by management based on market conditions.