TEN Holdings (NASDAQ: XHLD) stock surged more than 25% in pre-market trading Wednesday after the company announced its board of directors had approved a stock repurchase program, effective March 17, 2025.
Under the program, TEN Holdings can buy back up to $1 million of its outstanding common stock. The repurchase plan has no set expiration date, giving the company flexibility to act over time.
Any repurchases will depend on market conditions, legal requirements, and other corporate considerations. The company plans to finance the buybacks using cash from its operations, and all transactions will follow a 10b-18 plan.
The company said the program aims to enhance shareholder value, improve capital efficiency, and implement a flexible capital policy.
CEO Randolph Wilson Jones III shared his perspective on the decision. He said,
“Our decision to initiate this share repurchase program is based on our belief that investing in our common stock at this time represents a promising opportunity and is a prudent allocation of capital, and is reinforced by our confidence in the intrinsic long-term value of our business.”
The board of directors retains the right to terminate the program at any time. TEN Holdings (NASDAQ: XHLD) is not obligated to repurchase any specific number of shares, and an independent broker will oversee the process. The buybacks will comply with Nasdaq regulations and securities laws, including Rule 10b-18 and 10b5-1 of the Securities Exchange Act of 1934.
