Published on: December 20, 2024, 01:15h.
Last updated on: December 20, 2024, 01:15h.
Golden Matrix Group (NASDAQ: GMGI), a developer of online gaming platforms, announced the reinstatement of its share repurchase program.
The company’s stock has recently experienced a decline, prompting management to signal potential value to investors through the renewed buyback program.
The company currently has $4.958 million available for repurchasing shares and 129,242,993 shares outstanding,” as per a statement from the Las Vegas-based firm.
Golden Matrix’s shares are trading around $2, and repurchasing $4.95 million worth of stock would reduce outstanding shares by nearly 2.5 million. The buyback will occur on the open market, with the board having the discretion to adjust or suspend the plan. Insiders hold 85% of the shares.
Golden Matrix’s Strong Financial Position
With a market capitalization of $255.23 million, Golden Matrix is a small-cap stock with a robust balance sheet. The company holds $38.4 million in cash, more than double its $17.5 million in long-term debt.
The cash position allows the company to settle debts in cash, pursue acquisitions, and support growth strategies,” stated CEO Brian Goodman.
Goodman mentioned the positive performance of the company’s operating units and expected growth in the current quarter. Through its business-to-business and Meridianbet units, Golden Matrix develops gaming platforms and provides sports wagering services in multiple jurisdictions.
Expansion Plans of Golden Matrix
As Golden Matrix explores global growth opportunities, it aims to obtain licenses in Brazil and Ontario, Canada.
The Brazilian license presents a significant opportunity for the company in a rapidly growing market,” said Goodman.
Third-quarter profits and sales witnessed a substantial increase, and the company has strengthened its liquidity position.