LANGHORNE, Pa. - TEN Holdings, Inc. (Nasdaq: XHLD), a company specializing in event planning, production, and broadcasting services, has announced the launch of a stock repurchase program. The board of directors has approved the buyback plan, which took effect on Monday, allowing the company to repurchase up to $1 million of its outstanding common stock. The announcement comes as the company’s stock has declined over 92% in the past year, with current market capitalization around $13.5 million, according to InvestingPro data.
The repurchases will be conducted depending on market conditions, legal requirements, and other internal considerations, with funds for the buybacks coming from the company’s cash flow. TEN Holdings aims to enhance shareholder value, increase capital efficiency, and maintain a flexible capital strategy through this program. InvestingPro analysis indicates potential liquidity challenges, with a current ratio of 0.24 and short-term obligations exceeding liquid assets. InvestingPro subscribers have access to 12 additional key insights about XHLD’s financial health.
Randolph Wilson Jones III, CEO of TEN Holdings, expressed that the share repurchase initiative reflects the company’s belief in the value of its stock and the long-term intrinsic value of its business. The program, however, is not obligatory and may be halted at any time at the board’s discretion.
The repurchase plan will be carried out in accordance with the guidelines of a 10b-18 plan, following the rules of Nasdaq and the Securities Exchange Act of 1934, including Rule 10b-18 and 10b5-1. An independent broker will administer the program to ensure compliance with applicable laws and regulations.
TEN Holdings, headquartered in Pennsylvania, is known for producing virtual, hybrid, and physical events, leveraging its proprietary Xyvid Pro Platform to support its services. While the company’s decision to buy back shares signals confidence, InvestingPro data shows the company has not been profitable over the last twelve months, though analysts project a return to profitability this year. The company’s press release includes cautionary language about forward-looking statements, advising investors of the risks involved and the potential for material differences between projections and actual outcomes.
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