Phunware Inc (NASDAQ:PHUN) told investors that its Board of Directors has authorized a stock repurchase plan under which the company may buy back up to $5 million of its outstanding common stock.
Russ Buyse, CEO of the enterprise cloud platform for mobile, said in a statement: “We believe repurchasing our common stock is an attractive use of capital, given recent market prices.”
The company said the stock repurchase plan is expected to be completed over the next 12 months. The shares may be repurchased from time to time in open market transactions at prevailing market prices, it added.
READ: Phunware sees 120% revenue growth year-over-year in 3Q; revises guidance up by 225%
The actual timing, number and value of shares repurchased under the plan will be determined by management at its discretion and will depend on a number of factors, including the market price of the company’s common stock, general market and economic conditions, and applicable legal requirements, Phunware said, adding that it has no obligation to repurchase any shares under the plan, which may be suspended or discontinued at any time.
After trading flat for most of the morning, Phunware’s shares were 13% higher at US$0.98 by noon Eastern Time.
Phunware is a pioneer of MaaS, an award-winning, fully integrated enterprise cloud platform for mobile that provides companies with the products, solutions, data and services necessary to engage, manage and monetize their mobile application portfolios and audiences globally at scale.
Contact the author at stephen.gunnion@proactiveinvestors.com