Shares of United Maritime Corporation (NASDAQ: USEA) gained 12.50% in Thursday’s session to $1.71 following the company’s share buyback. At the end of the last trading session, USEA stock finished at $1.52.
How did USEA go through the buyback plan?
In a press release released today, United Maritime Corp. (USEA) announced that it has repurchased approximately 1.86 million shares.
- USEA completely utilized its share buyback plan, which was announced previously, to repurchase approximately 20% of its outstanding common shares for an average price of $1.6095.
- A second share buyback plan (the “Plan”) has also been approved, where United Maritime Corp may purchase up to an additional $3 million of its outstanding common shares on the open market. The Plan represents an additional 26% of the market value of USEA on September 21, 2022.
- After a successful buyback plan, USEA’s net asset value and cash flow per share for shareholders have increased significantly.
- According to United Maritime Corp, its share price is considerably undervalued at these levels due to the attractive valuation environment and positive earnings outlook in the tanker industry. USEA is therefore implementing another substantial buyback program.
What we plan to do:
In accordance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended, or in accordance with a trading plan adopted in accordance with the Securities Exchange Act, United Maritime Corp may repurchase more of its common shares.
- USEA and its shareholders will benefit from any repurchases made as a result of the Plan when the prices are considered reasonable and in the best interests of the company and its shareholders.
- Stock availability, market conditions, stock trading price, alternative uses of capital, securities laws, and the Company’s financial performance will all affect this decision.
- In this situation, any factor deemed appropriate may be used to suspend, terminate, or modify the Plan, including market conditions, cost of repurchasing shares, availability of alternative investment opportunities, liquidity, and other factors.
- The timing of repurchases of shares may also be influenced by these factors. In accordance with the Plan, United Maritime Corp (USEA) is not obligated to purchase any of its shares.
- The Board of Directors of the USEA approved the Plan, which is effective immediately and expires on March 31, 2023.
USEA also focuses on:
As part of the delivery process of the Aframax vessel acquisition, USEA renamed the vessel M/T Bluesea (the “Vessel”). Samsung Heavy Industries Co., Ltd. built the vessel in 2006 at a deadweight of 114,000 deadweight tons. In July 2022, United Maritime Corp agreed to purchase four tankers, and M/T Bluesea is the second ship out of that fleet.