Gorilla Announces Share Buyback of up to $6 Million as It Deems Shares to Be Undervalued
Gorilla Technology Group Inc. (NASDAQ: GRRR) has announced a strategic share buyback program of up to $6 million, aiming to address what it believes is a significant undervaluation of its shares. The company has entered into privately negotiated transactions to repurchase over 1.1 million ordinary shares, expected to close within five business days. This initiative comes in response to a sharp decline in the company's market cap from approximately $650 million to $35 million, despite strong business performance.
Key financial highlights include:
- Free cash reserves exceeding $40 million
- Current assets totaling over $58 million, including restricted capital
- Real estate holdings valued at over $25 million
The company expects to release unaudited financial statements for the first half of 2024 by September 30, 2024.
Gorilla Technology Group Inc. (NASDAQ: GRRR) ha annunciato un programma strategico di riacquisto di azioni fino a $6 milioni, mirando a risolvere quella che ritiene essere una significativa sottovalutazione delle sue azioni. L'azienda ha avviato transazioni private per riacquistare oltre 1,1 milioni di azioni ordinarie, che ci si aspetta si concludano entro cinque giorni lavorativi. Questa iniziativa arriva in risposta a un forte calo della capitalizzazione di mercato dell'azienda, passata da circa $650 milioni a $35 milioni, nonostante un forte andamento aziendale.
I principali evidenziali finanziari includono:
- Risorse liquide superiori a $40 milioni
- Attività correnti per un totale di oltre $58 milioni, inclusi capitali vincolati
- Attività immobiliari valutate oltre $25 milioni
L'azienda prevede di rilasciare i bilanci non verificati per il primo semestre del 2024 entro il 30 settembre 2024.
Gorilla Technology Group Inc. (NASDAQ: GRRR) ha anunciado un programa estratégico de recompra de acciones de hasta $6 millones, con el objetivo de abordar lo que considera una subvaloración significativa de sus acciones. La empresa ha entrado en transacciones negociadas en privado para recomprar más de 1,1 millones de acciones ordinarias, que se espera concluyan en un plazo de cinco días hábiles. Esta iniciativa surge en respuesta a una fuerte caída en la capitalización de mercado de la empresa, que pasó de aproximadamente $650 millones a $35 millones, a pesar de un sólido rendimiento empresarial.
Los aspectos financieros clave incluyen:
- Reservas de efectivo libre que superan los $40 millones
- Activos corrientes que totalizan más de $58 millones, incluidos capitales restringidos
- Propiedades inmobiliarias valoradas en más de $25 millones
La empresa espera publicar estados financieros no auditados para la primera mitad de 2024 antes del 30 de septiembre de 2024.
고릴라 테크놀로지 그룹 인크 (NASDAQ: GRRR)는 최대 $600 만의 전략적 자사주 매입 프로그램을 발표하며 자사의 주식이 상당히 저평가되었다고 믿고 있습니다. 회사는 110 만 개 이상의 보통주를 재매입하기 위해 비공식 거래에 참여했으며, 영업일 기준 5일 이내에 거래가 마무리될 것으로 예상합니다. 이 이니셔티브는 회사의 시장 가치가 약 $650 백만에서 $35 백만으로 급락한 데 대한 대응으로 진행됩니다. 비즈니스 성과는 여전히 양호합니다.
주요 재무 하이라이트는 다음과 같습니다:
- 4천만 달러를 초과하는 잉여 현금 준비금
- 제한 자본을 포함하여 총 5천8백만 달러 이상의 현재 자산
- 2천5백만 달러 이상으로 평가되는 부동산 보유
회사는 2024년 상반기에 대한 감사되지 않은 재무제표를 2024년 9월 30일 이전에 발표할 계획입니다.
Gorilla Technology Group Inc. (NASDAQ: GRRR) a annoncé un programme stratégique de rachat d'actions pouvant atteindre 6 millions de dollars, visant à remédier à ce qu'elle considère comme une sous-évaluation significative de ses actions. La société a engagé des transactions privées pour racheter plus de 1,1 million d'actions ordinaires, dont la clôture devrait intervenir dans les cinq jours ouvrables. Cette initiative fait suite à une forte baisse de la capitalisation boursière de la société, passée d'environ 650 millions à 35 millions de dollars, malgré une solide performance commerciale.
Les points financiers clés comprennent :
- Des réserves de liquidités excédant 40 millions de dollars
- Des actifs courants totalisant plus de 58 millions de dollars, y compris des capitaux restreints
- Des biens immobiliers évalués à plus de 25 millions de dollars
La société prévoit de publier des états financiers non audités pour le premier semestre 2024 d'ici le 30 septembre 2024.
Gorilla Technology Group Inc. (NASDAQ: GRRR) hat ein strategisches Aktienrückkaufprogramm von bis zu 6 Millionen Dollar angekündigt, um eine ihrer Meinung nach erhebliche Unterbewertung ihrer Aktien zu adressieren. Das Unternehmen hat private Verhandlungen für den Rückkauf von über 1,1 Millionen Stammaktien aufgenommen, die voraussichtlich innerhalb von fünf Geschäftstagen abgeschlossen werden. Diese Initiative erfolgt als Reaktion auf einen starken Rückgang der Marktkapitalisierung des Unternehmens von etwa 650 Millionen auf 35 Millionen Dollar, trotz einer starken Unternehmensleistung.
Wichtige Finanzkennzahlen umfassen:
- freie Zahlungsmittelbestände von über 40 Millionen Dollar
- Umlaufvermögen von insgesamt über 58 Millionen Dollar, einschließlich gebundenem Kapital
- Immobilienbestände, die mit über 25 Millionen Dollar bewertet werden
Das Unternehmen erwartet, dass es bis zum 30. September 2024 ungeprüfte Finanzberichte für das erste Halbjahr 2024 veröffentlichen wird.
- Initiation of a $6 million share buyback program to address perceived undervaluation
- Strong cash position with free cash reserves exceeding $40 million
- Significant asset base with current assets over $58 million and real estate holdings valued at over $25 million
- Largest customers have fulfilled their payment obligations, strengthening cash reserves
- Sharp decline in market capitalization from $650 million to $35 million
- Perceived significant undervaluation of shares despite reported strong business performance
Insights
Gorilla's $6 million share buyback is a strategic move to address perceived undervaluation. With
However, the sharp decline in market cap from
The AI market's growth contrasts sharply with Gorilla's stock performance, suggesting potential company-specific issues or market skepticism. The buyback may temporarily boost the stock price, but long-term value creation depends on operational execution and market positioning. The company's claim of key projects performing well needs substantiation through concrete financial metrics and customer testimonials.
The privately negotiated transactions for share repurchases raise questions about the motivations of selling shareholders and the terms of these deals. Investors should scrutinize whether these transactions truly represent value or if they potentially mask underlying problems. The company's emphasis on real estate holdings (
Key Highlights:
Share Repurchase Underway: To repurchase 1.1 million shares, closing in the next five business days.
Unaudited H1 2024 financials expected by September 30, 2024.
Holding Free cash reserves exceed
$40 million ; Current assets total over$58 million , including restricted capital; Real estate holdings valued at over$25 million
London, United Kingdom--(Newsfile Corp. - September 12, 2024) - Gorilla Technology Group Inc. (NASDAQ: GRRR) ("Gorilla" or the "Company") is thrilled to announce an ambitious and strategic share buyback program, aimed at addressing what we believe to be a significant undervaluation of our shares. This initiative comes in response to the sharp decline in the Company's market cap from approximately
The Board of Directors has authorised the repurchase of up to
We are also pleased to report that our largest customers have fulfilled their payment obligations. This has significantly bolstered our cash reserves, providing a robust financial foundation to support this strategic buyback program.
Under this program, the Company will continue to opportunistically pursue additional share repurchases so long as this undervaluation persists. This ensures a comprehensive and strategic consolidation of shares, reinforcing our commitment to maximizing shareholder value.
"This share buyback program reflects our unwavering belief in the Company's intrinsic value and our confidence in its future potential. By taking these actions, we believe that we are not only addressing the current market undervaluation but also establishing a solid foundation for sustainable growth and enhanced shareholder value. This initiative showcases our commitment to leveraging our strong financial position to drive long-term success and achieve market leadership. Our financial position continues to strengthen, with cash reserves growing steadily, and our assets clearly demonstrate our solid footing. We believe our tangible and intangible assets, including real estate and intellectual property, highlight the significant intrinsic value found within Gorilla, underlining our strong market position and dedication to delivering exceptional shareholder value," said Jay Chandan, Chairman & CEO.
"I have observed a significant decline in Gorilla's market capitalization, which we have assessed as a substantial undervaluation of our shares, despite the thriving AI market. Our key projects are performing. Our share buyback program is a decisive step to address this undervaluation and support Gorilla's long-term strategic goals. We believe this move sends a clear and powerful message to the market," concluded Jay Chandan.
The Company expects to release unaudited financial statements for the first half of 2024 on or prior to September 30, 2024.
About Gorilla Technology Group Inc.
Headquartered in London U.K., Gorilla is a global solution provider in Security Intelligence, Network Intelligence, Business Intelligence and IoT technology. We provide a wide range of solutions, including, Smart City, Network, Video, Security Convergence and IoT, across select verticals of Government & Public Services, Manufacturing, Telecom, Retail, Transportation & Logistics, Healthcare and Education, by using AI and Deep Learning Technologies.
Our expertise lies in revolutionizing urban operations, bolstering security and enhancing resilience. We deliver pioneering products that harness the power of AI in intelligent video surveillance, facial recognition, license plate recognition, edge computing, post-event analytics and advanced cybersecurity technologies. By integrating these AI-driven technologies, we empower Smart Cities to enhance efficiency, safety and cybersecurity measures, ultimately improving the quality of life for residents.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Gorilla's actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "might" and "continues," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, statements regarding our beliefs about future revenues, our ability to attract the attention of customers and investors alike, our expectations to swing to profit in the quarters ahead, our expectation that share repurchases contemplated pursuant to executed share repurchase agreements will close in the short term, Gorilla's strategic shift to enable it to pursue larger projects with better revenue visibility, Gorilla's largest projects and ability to win additional projects and execute definitive contracts related thereto, along with those other risks described under the heading "Risk Factors" in the Form 20-F Gorilla filed with the Securities and Exchange Commission (the "SEC") on May 15, 2024 and those that are included in any of Gorilla's future filings with the SEC. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results. Most of these factors are outside of the control of Gorilla and are difficult to predict. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Gorilla undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made except as required by law or applicable regulation.
Investor Relations Contact:
Dave Gentry
RedChip Companies, Inc.
1-407-644-4256
GRRR@redchip.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/223053
FAQ
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