Unitronix Corp. Boosts Shareholder Value with Expanded Stock Buyback Program

Unitronix Corp. (OTC: UTRX), a forward-thinking company focused on high-growth opportunities within blockchain technology, digital currencies, and decentralized finance (DeFi), has announced an expanded stock buyback program. This strategic move aims to enhance shareholder value by reducing the outstanding share count and increasing earnings per share (EPS). The company plans to repurchase up to 100,000,000 shares of its outstanding common stock through the remainder of 2024, with the potential to reduce the outstanding share count by a total of 165 million shares.



The expanded stock buyback program is expected to have a positive impact on Unitronix's EPS in both the short and long term. By repurchasing and canceling shares, the company reduces the outstanding share count, which increases the EPS because the same amount of earnings is now spread over fewer shares. For instance, if Unitronix had a net income of $50,000 before the buyback, with 1 billion shares outstanding, the EPS would be $0.00005. After canceling 165 million shares, the new outstanding share count becomes 835 million, increasing the EPS to $0.00006 (assuming the net income remains the same).

In addition to the expanded stock buyback program, Unitronix has announced plans to reduce its authorized shares by as much as 75%, down to 500 million from the current two billion. This action supports management's efforts to create a more efficient and shareholder-focused equity base. By reducing the authorized shares, Unitronix limits the number of shares that can be issued in the future, potentially leading to a more conservative approach to capital raising and enhancing the impact of the share buyback program on the outstanding share count.

The reduction in authorized shares also influences Unitronix's future equity issuance and dilution. With fewer authorized shares, the company must be more selective in its equity issuance decisions, potentially leading to a more conservative approach to capital raising. This strategic move creates a more efficient and shareholder-focused equity base, as stated by Kenneth J. Williams, Chief Executive Officer of Unitronix:

> "The reduction in authorized shares... supports management's efforts to create a more efficient and shareholder-focused equity base."

In conclusion, Unitronix's expanded stock buyback program and reduction in authorized shares are expected to have a positive impact on the company's EPS, stock price, and market capitalization. By reducing the outstanding share count and limiting future equity issuance, Unitronix is enhancing shareholder value and demonstrating confidence in its long-term growth prospects. As the company continues to execute its strategic initiatives, investors should monitor its progress and consider the potential benefits of these shareholder-friendly moves.