ISP Technology launched a $10 million share buyback on Investing.com
Los Angeles – Ispire Technology Inc. (NASDAQ: ISPR ), a $252 million market capitalization company focused on vaping technology and precision dosing, has launched a share buyback program. The board of directors has authorized the repurchase of up to $10 million of common stock over the next 24 months.
CEO Michael Wang said this move is a testament to the company’s confidence in its growth and strategic investments, and aims to position ESP for future success. Wang highlighted the company’s improved profit margin as an improvement to start returning capital to shareholders, despite a gross profit margin of 20.6 percent. He pointed out that the current market situation has created a favorable opportunity for the company to repurchase the stock, which it considers to be a significant reduction in its intrinsic value. According to InvestingPro, the company maintains a strong balance sheet with more cash than debt, although analysts expect net income to decline this year.
The repurchase strategy may include acquiring shares through open market transactions, accelerated stock repurchase programs, tender offers, private transactions or other means, under the Rule 10b5-1 trading plan. The timing and amount of purchases will depend on the board’s discretion, market conditions, stock price, legal requirements and other factors. The program is not limited to a specific end date and may be terminated, changed or discontinued without notice. With 12.8% revenue growth over the past twelve months, InvestingPro subscribers can get additional insights into Espiri’s financial health and growth prospects, plus 8 additional ProTips.
Espire is engaged in the research, development and distribution of e-cigarettes and cannabis inhalers and holds more than 400 patents worldwide. The company’s e-cigarette products, sold under the Asper brand, are available worldwide except in the US, China and Russia. ISP offers cannabis vaping hardware in the US, Europe, South Africa and recently expanded its marketing efforts to Canada and Latin America. The company generated $148.4 million in revenue over the past twelve months, although it is currently operating at a loss of $17.6 million with negative EBITDA.
The information in this article is based on a press release from Espire Technology Inc. The Company’s actual results may differ materially from those projected in the forward-looking statements.
In other recent news, Esp Technology Inc. has announced the transition from independent registered public accounting firm Marcum LLP to CBIZ (NYSE: ) CPAs PC, following the resignation of Marcum. The transition was approved by the ISP Technology Audit Committee. Effective immediately for the fiscal year ending June 30, 2025. Despite material weaknesses in internal control over financial reporting, the company maintains a healthy current ratio. 1.13 and carries more cash than debt on the balance sheet.
Before the regulator, ESP Technology and IKE Tech LLC reported a successful meeting with the FDA regarding their age verification technology for an electronic nicotine delivery system. FDA has acknowledged the potential to receive a premarket product application for this technology, which may receive priority review.
In terms of global expansion, ISP has partnered with Dubai-based distributor and lifestyle brand Hidden Hills Club, Aden. These partnerships aim to commercialize Aspirin’s nicotine portfolio in the Middle East, North Africa and globally.
Roth/MKM maintained a buy rating on shares of Ispire Technology, citing revenue potential from global expansion efforts and the introduction of new vaping devices. Finally, Esp Technology has strengthened its executive team with the appointment of Jim McCormick (NYSE: ) as its new Chief Financial Officer. These are some of the latest developments at Ispire Technology Inc.
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