- Oblong (OBLG, Financial) has initiated a $500,000 stock buyback program.
- This program could allow repurchase of up to 25% of shares at current market prices.
- Oblong is debt-free and holds $5.0 million in cash as of December 2024.
Oblong, Inc. (OBLG), headquartered in Denver, has revealed a new stock buyback initiative authorized by its Board of Directors, valued at $500,000. With approximately 1.1 million shares of common stock outstanding, this move could enable the company to repurchase up to 25% of its shares at current market prices. This action underscores management's conviction that the stock is currently undervalued.
The share repurchase will leverage Oblong’s existing cash reserves, which stood at $5.0 million as of December 31, 2024, with the company enjoying a debt-free financial position. Repurchases may be undertaken in the open market, through privately negotiated transactions, or via other methods allowed by securities laws, including potential Rule 10b5-1 trading plans.
Peter Holst, CEO of Oblong, expressed confidence in the company's intrinsic value and commitment to its shareholders. He highlighted the strength of Oblong's balance sheet as a facilitating factor for opportunistic share repurchases while pursuing strategic growth through mergers and acquisitions (M&A) in the transformative SaaS and AI-enabled business sectors.
Oblong continues to focus on identifying high-potential M&A targets, specifically those that align with its vision for innovation and can enhance operating leverage through AI-driven automation and predictive analytics. Despite the current market challenges in finding suitable opportunities, the company remains dedicated to enhancing shareholder value through strategic initiatives.
