The share price of Enerkon Solar International, Inc (OTCPink: ENKS) rose 64.23 percent at $0.4500, and the company has traded in a day range of $0.4700 to $0.2760. It’s been a good year for Enerkon stock, with a 750.59% gain in price, reaching a high of $2.45 with a $31.78M market cap at the end of last session. An announcement about a large stock buyback campaign led ENKS stock to rise.
How will ENKS handle the buyback?
Enerkon is an international holding company that consists of six companies in the US and UK. Patents and Trademarks, Renewable Energy, Biotech, Solar – Hydrogen Production, Defense, and New Disruptive Technologies are just some of the major market segments that ENKS invests in.
In a press release yesterday, Enerkon announced plans for a massive stock buyback, part of which will result in a dramatic decline in the company’s outstanding common stock.
- In an effort to boost investor confidence, ENKS has agreed to launch a share buyback campaign starting yesterday, amounting to 25,250,000 shares.
- This initial purchase was to acquire common shares owned by the chairman of the company.
- CEO Benjamin Ballout agreed to allow the company to repurchase a majority of his common shares because he does not intend to sell any of his shares on the public market or to outsiders.
What is ENKS aiming for?
Enerkon (ENKS) plan will largely benefit public shareholders as the action will result in a reduction of shares outstanding, which will increase per-share book value, without resorting to a reverse split, which is unpopular among shareholders and investors. This move by ENKS is in preparation for the company’s NASDAQ listing, which requires a minimum share entry price of $4.00 to qualify for listing on the national exchange.