SCOTTSDALE, AZ - Zoned Properties, Inc. (OTCQB:ZDPY), a real estate development firm specializing in properties for regulated industries such as legalized cannabis, has announced the launch of a stock repurchase program. The company's Board of Directors has authorized the buyback of up to $1 million of its common stock over an unspecified period.
According to the company's CEO, Bryan McLaren, the repurchase program reflects Zoned Properties' strong operational cash flow, a robust balance sheet, and the company's commitment to enhancing shareholder value. McLaren emphasized the company's solid operational performance and the disparity between the public valuation and the tangible book value of the company.
Zoned Properties expects to finance the share repurchases using its cash reserves and anticipated future free cash flow. The company has stated that there is no obligation to repurchase any specific number of shares, and the program may be altered, paused, or terminated at any time.
The company, headquartered in Scottsdale, Arizona, focuses on value-added real estate investments within the U.S.-regulated cannabis industry. Zoned Properties operates with a standardized investment process and leverages proprietary property technology. It also provides a suite of real estate services, including brokerage and advisory practices, to support its development model.
The information in this article is based on a press release statement from Zoned Properties, Inc.
InvestingPro Insights
Zoned Properties, Inc. (OTCQB:ZDPY) has recently indicated a commitment to shareholder value with the launch of its stock repurchase program. This strategic move is underscored by some notable financial metrics and market performance. According to InvestingPro data, ZDPY boasts a remarkable gross profit margin of 91.16% for the last twelve months as of Q4 2023. This impressive figure is a testament to the company's ability to maintain profitability despite the operational challenges inherent in the regulated industries it serves.
Moreover, the company's stock has experienced significant returns, with an 18.33% increase over the last week and a 34.52% increase over the last three months, showcasing a strong short-term performance that may interest investors looking for growth opportunities. However, it is important to note that ZDPY's price-to-earnings (P/E) ratio stands at -14.17, reflecting the company's current lack of profitability over the last twelve months.
InvestingPro Tips highlight that ZDPY is a niche player in the real estate development industry for regulated sectors, including legalized cannabis. This specialization could be a double-edged sword, offering both unique growth potential and sector-specific risks. Additionally, the company's liquid assets exceed its short-term obligations, indicating a stable financial position for handling immediate liabilities.
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