LAS VEGAS - Jet.AI Inc. (NASDAQ: JTAI), a company at the intersection of private aviation and artificial intelligence, has launched a stock repurchase initiative, authorizing the buyback of up to $2 million in common stock. The repurchase program, greenlit by the board of directors, is set to run through December 31, 2025.
The company may repurchase shares using a variety of methods, including open market purchases and privately negotiated transactions, all subject to market conditions and legal requirements. The program's flexibility allows for modifications, discontinuations, or suspensions at any time, and it does not commit Jet.AI to buy a specific number of shares.
In a strategic shift, Jet.AI has withdrawn an S-1 registration statement for a proposed offering, citing that the terms no longer align with the company's strategic goals and stockholder interests. This decision is expected to help the company regain compliance with NASDAQ's listing rule regarding stockholders' equity before the imposed November 26 deadline.
CEO Mike Winston commented on the program, highlighting the opportunity to repurchase shares, particularly during times of market dislocation. He also noted the company's recent success in simplifying its capital structure by exchanging publicly held warrants for stock, eliminating the need for the previously considered warrant-heavy transaction.
Jet.AI operates through two primary segments: Software (ETR:SOWGn) and Aviation. The Software segment includes the CharterGPT app, which leverages natural language processing and machine learning to enhance the private jet booking process, and the Jet.AI Operator platform, which provides software solutions for FAA Part 135 charter providers. The Aviation segment offers services such as jet aircraft fractions, jet card programs, on-fleet charter, management, and buyer's brokerage.
The company, founded in 2018, is based in Las Vegas, Nevada, and San Francisco, California, and is an official partner of the 2023 NHL Stanley Cup champions, the Las Vegas Golden Knights.
The information in this article is based on a press release statement from Jet.AI.
In other recent news, Jet.AI Inc. has announced several significant developments. The company has secured an agreement with Textron (NYSE:TXT) Aviation Inc. for the acquisition of three Cessna Citation CJ4 aircraft, a move that is expected to enhance its service offerings and operational efficiency. However, Jet.AI is also facing potential delisting from Nasdaq due to non-compliance with the minimum bid price requirement, but remains hopeful about regaining compliance before the extended deadline.
Furthermore, Jet.AI has adjusted the terms of Series B Convertible Preferred Stock held by Ionic Ventures and announced a direct stock offering, aiming to sell around 15.6 million shares which is projected to yield approximately $1.5 million in gross proceeds. The company is also set to introduce enhancements to its AI-driven software products, CharterGPT and Reroute AI, at the upcoming 2024 NBAA Business Aviation Convention & Exhibition.
Additionally, Jet.AI has secured a $280 million debt financing arrangement for the acquisition of Bombardier (OTC:BDRBF) Challenger 3500 aircraft, with deliveries expected to commence in 2026. These recent developments highlight Jet.AI's ongoing efforts to align its corporate strategies and investor relations.
InvestingPro Insights
Jet.AI's recent decision to launch a stock repurchase program comes amid challenging financial circumstances, as revealed by InvestingPro data. The company's revenue for the last twelve months as of Q2 2024 stands at $14.48 million, with a concerning revenue growth decline of -22.94% over the same period. This context sheds light on why the company might be looking to boost investor confidence through share buybacks.
The negative P/E ratio of -0.32 and a Price to Book ratio of -1.09 suggest that Jet.AI is currently operating at a loss and facing significant financial hurdles. These metrics align with the company's decision to withdraw its S-1 registration statement and focus on regaining NASDAQ compliance.
InvestingPro Tips highlight additional concerns:
1. Jet.AI is currently unprofitable, with negative earnings reported in the last twelve months.
2. The company's stock price has experienced a sharp decline, losing 97.19% over the past year.
These insights provide crucial context to the company's strategic decisions and financial health. InvestingPro offers 12 additional tips for Jet.AI, providing investors with a more comprehensive analysis of the company's position and potential future directions.
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