Classover Holdings Inc (NASDAQ:KIDZ) saw its shares spike 71.2% in premarket trading Wednesday following the announcement that the company’s board has approved a $2 million share repurchase program targeted at its Class B common stock.
The company stated that the buyback will be funded using existing cash reserves as well as future operating cash flows. The firm outlined that repurchases may be carried out in a number of ways - including open market purchases and block trades - provided such transactions comply with the Securities Exchange Act regulations.
Management emphasized that the specifics of when and how many shares are repurchased will be left to the discretion of the company’s leadership. Factors listed as informing those decisions include prevailing market conditions, the prevailing share price, and the company’s liquidity needs. The announcement added that any shares acquired under the program will either be retained as treasury stock or cancelled.
"Following our recent fiscal milestones, we believe the current market valuation does not fully reflect Classover’s operational progress and the significant opportunities within our digital learning platform," said Luo Hui, CEO of Classover.
The company clarified that the program does not create an obligation to repurchase a specified number of shares. It also noted the board may modify, suspend, or terminate the buyback at any time based on corporate considerations.
Classover described itself as operating in the AI education technology sector and presented the share repurchase program as a measure intended to bolster shareholder value while signalling the board’s confidence in the company’s long-term growth prospects within its digital learning platform.
The announcement sets out the mechanics of the buyback and the company’s stated rationale, while leaving operational details such as precise timing and volume to future management determinations. Market reaction was immediate in premarket trading, reflected in the sharp share-price increase reported Wednesday.
The reporting above reflects only the information disclosed in the company announcement and the market moves cited in connection with that announcement.