Jet.AI Inc. (JTAI) shares are taking flight on Wednesday, soaring over 20% following a series of strategic moves by the company. In a bid to boost shareholder value, Jet.AI’s board of directors has authorized a share repurchase program totaling $2 million. This program allows the company to buy back its own shares, potentially taking advantage of what they believe are undervalued prices. The repurchase program is set to run through the end of 2025.
The company’s CEO, Mike Winston, highlighted the strategic reasoning behind the buyback, stating, “This move allows Jet.AI to buy back its shares when the company believes they are undervalued.” He also addressed the recent simplification of the company’s capital structure, emphasizing that the buyback program becomes even more relevant in light of the recent warrant exchange.
In addition to the share repurchase program, Jet.AI has also withdrawn its S-1 registration statement. This statement was initially filed in preparation for a prospective offering that the company had been pursuing. However, Jet.AI has determined that the terms of the offering no longer align with its current strategic goals. The company’s priority is to meet the Nasdaq listing requirements by the November 26 deadline.
This news comes on the heels of Jet.AI enacting a 1-for-225 reverse stock split this week, which has naturally caused some volatility in the stock. The split, implemented to ensure compliance with Nasdaq’s listing criteria, has seen the stock begin trading on a split-adjusted basis as of Tuesday.
The combined impact of these actions has propelled JTAI stock to a significant gain of 21.9% to $8.09 per share at the time of writing. As Jet.AI continues to navigate its path towards meeting listing requirements and executing on its strategic vision, the stock’s future trajectory will be closely watched by investors.
