ISTANBUL - Marti Technologies, Inc. (NYSE American: MRT), a leading mobility service provider in Türkiye, has announced an extension to its ongoing share repurchase program. The company's Board of Directors has approved a six-month extension, allowing for the repurchase of up to $2.5 million of its Class A ordinary shares until April 9, 2025.
This decision follows the initial launch of the repurchase program on January 10, 2024, and a subsequent amendment extending its duration to October 9, 2024. In addition to the extension, the Board has increased the maximum price per share from $3.30 to $5.00. As of the last trading day before the announcement, Marti's shares closed at $2.04.
The repurchase program, effective immediately, permits the company to buy back shares through private agreements or on the open market, in compliance with securities laws and regulations, including Rule 10b-18 of the Securities Exchange Act of 1934. The Board retains the authority to periodically review the program and may adjust its terms or the total authorized amount for repurchases. The program may also be paused or discontinued at any time at the discretion of the Board.
The timing and volume of share repurchases will be contingent on management's assessment of the company’s share intrinsic value, current market price, overall market conditions, liquidity, legal and regulatory restrictions, and alignment with Marti's strategic and financial objectives.
Marti Technologies, established in 2018, operates Türkiye's premier mobility platform, offering a suite of transportation options including ride-hailing services and a fleet of rental e-mopeds, e-bikes, and e-scooters, all powered by proprietary software and IoT infrastructure.
This announcement contains forward-looking statements, which include information about potential future repurchases and are subject to various risks and uncertainties. Marti does not undertake any obligation to update these statements in light of new information or future events. This information is based on a press release statement from Marti Technologies, Inc.
In other recent news, Marti Technologies, Inc. has initiated a monetization strategy for its ride-hailing service through driver subscription packages, following two years of expanding its ride-hailing business without monetization. This development coincides with the company's disclosure of mixed financial results for the first half of 2024, reporting a revenue of $8.4 million and a net loss of $21.9 million. Despite the net loss, Marti Technologies saw substantial growth in its ride-hailing services and two-wheeled electric vehicle rental business.
The company also acquired Zoba, an AI-powered SaaS platform, which has enhanced fleet optimization and led to higher daily rides per deployed vehicle. As part of its recent developments, Marti Technologies initiated a share repurchase program, allowing it to buy back up to $2.5 million of its ordinary shares. The company also appointed Oguz Erkan as its new Chief Financial Officer.
These recent developments reflect Marti Technologies' focus on growth and operational efficiency, as well as its optimism about the growth and performance of its ride-hailing business and the market opportunities ahead. However, investors are advised to consider the inherent risks detailed in the company's SEC filings when evaluating these new initiatives.
InvestingPro Insights
Marti Technologies' decision to extend its share repurchase program comes amid a period of significant stock price volatility and mixed financial performance. According to InvestingPro data, the company has seen a strong return over the last three months, with a 20% price total return. This recent uptick aligns with the Board's decision to increase the maximum repurchase price from $3.30 to $5.00 per share.
However, investors should note that Marti faces some financial challenges. An InvestingPro Tip indicates that the company is quickly burning through cash, which could impact its ability to sustain the repurchase program long-term. Additionally, with a market capitalization of $119.55 million USD, Marti is operating in a relatively small-cap space, which often comes with higher volatility.
The company's revenue for the last twelve months as of Q2 2024 stood at $18.95 million USD, with a concerning revenue growth of -23.39% over the same period. This aligns with another InvestingPro Tip suggesting that analysts anticipate a sales decline in the current year.
For investors seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for Marti Technologies, providing a deeper understanding of the company's financial health and market position.
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