Royalty Management Holding Corporation's Board of Directors Approves Initiation of Stock Repurchase Program

Rhea-AI Summary

Royalty Management Holding 's Board of Directors has approved the initiation of a stock repurchase program, allowing the company to buy back up to $2.0 million of its common stock over the next 24 months.

Insights

Financial Analyst

The initiation of a stock repurchase program by Royalty Management Holding Corporation is a significant move that typically reflects the company's confidence in its intrinsic value. By allocating up to $2.0 million for stock buybacks, management is signaling that they consider the stock to be undervalued. This could, in theory, lead to a positive investor sentiment as buybacks often have the effect of reducing the number of shares outstanding, potentially increasing earnings per share and, consequently, the share price. However, the scale of the repurchase in relation to the company's overall market capitalization is critically important. A $2.0 million buyback for a small cap company can be substantial, but for larger companies, it might be a drop in the ocean and have a negligible effect on the stock price. Investors should also consider the opportunity cost of these funds, as the money used for stock repurchases is not being invested back into the company's core operations or used for expansion.

Market Research Analyst

When evaluating the buyback program, one must assess the broader market conditions. If RMCO is undertaking this buyback in a bullish market, the action could be interpreted as a way to ride the momentum. If the opposite is true and the market is bearish, it might appear as a defensive move to prop up the stock price. Furthermore, the method of buyback, either in the open market or through privately negotiated transactions, will influence the impact on the stock price. Open market purchases can create immediate demand for the shares, while private deals can lead to less transparency. Moreover, this announcement could also create a short-term positive reaction in the stock market, as it suggests to some investors that the company is undervalued. The long-term effects, however, depend on the company's future performance and whether the capital deployed for the repurchase could have been used more effectively for growth initiatives.

Unanimous Board consent to begin a repurchase program of common stock

FISHERS, ID / ACCESSWIRE / April 17, 2024 / Royalty Management Holding Corporation (NASDAQ:RMCO) ("Royalty Management" "RMCO", or the "Company"), an innovative royalty company building shareholder value by acquiring and developing high value assets in sustainable market environments, announced today that the Company's Board of Directors voted unanimously to institute a stock repurchase program of Royalty Management Holding Corporation's Class A Common Shares. Under the program, the Company may purchase up to $2.0 million of its common stock over the next 24 months, as market conditions warrant. The shares may be repurchased in the open market or in privately negotiated transactions, at prices that the Company deems appropriate and subject to market conditions, applicable law and other factors deemed relevant in the Company's sole discretion.

"We are incredibly excited about the current operations and portfolio of royalty holdings and the potential value for RMCO that can be unlocked with our partnership with these companies and operations", said Thomas Sauve, Chief Executive Officer of Royalty Management Holding Corporation. We are grateful that the Board of Directors has shown their support for these efforts and look forward to the opportunity to add value to the Company and its shareholders through this program.

The stock repurchase program does not obligate the Company to repurchase any dollar amount or number of shares of common stock, and the program may be suspended or discontinued at any time. Any purchases made under this repurchase program will be reported on the immediately following quarterly report, Form 10Q.

About Royalty Management Holding Corporation

Royalty Management Holding Corporation (NASDAQ: RMCO) is a royalty company building shareholder value to benefit both its shareholders and communities by acquiring and developing high value assets in sustainable market environments. The business model focuses on acquiring and structuring cashflow and revenue streams around assets that can support the communities by monetizing the current existing cash flow streams while identifying transitionary cash flow from the assets for the future. For more information visit www.royaltymgmtcorp.com.

Forward-Looking Statements

This press release contains statements that constitute "forward-looking statements," including with respect to the initial public offering. No assurance can be given that the offering discussed above will be completed on the terms described, or at all. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those that will be set forth in the "Risk Factors" section of the Company's registration statement and proxy statement/prospectus to be filed with the SEC. Copies will be available on the SEC's website, www.sec.gov. The information contained in this release is as of the date first set forth above. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Investor Contact:
RedChip Companies Inc.
Robert Foley
1-800-RED-CHIP (733-2447)
Info@redchip.com

Company Contact:
Thomas Sauve
Chief Executive Officer
(317) 855-9926

SOURCE: Royalty Management Holding Corporation

View the original press release on accesswire.com

FAQ

What did Royalty Management Holding 's Board of Directors approve?

The initiation of a stock repurchase program.

How much common stock can the company repurchase under the program?

Up to $2.0 million.

Over what period can the company repurchase the common stock?

The next 24 months.

How can the company repurchase the shares?

In the open market or in privately negotiated transactions.

What factors will determine the repurchase prices?

Market conditions, applicable law, and other relevant factors at the company's discretion.