SunCar Technology Group Inc. (NASDAQ: SDA) shares popped Friday. The New York-based company, Cayman Islands exempt, today announced that its board of directors has authorized a share repurchase program to buy back up to $10 million of its outstanding Class A ordinary shares, par value $0.0001 per share.
This program reflects the Company's confidence in its long-term growth prospects. The share repurchase program is expected for the next three months. The Company intends to fund the repurchases through a combination of cash on hand and cash generated from operations.
The Company may repurchase shares of its Class A Ordinary Shares from time to time on the open market or in privately negotiated transactions, or otherwise in accordance with applicable federal securities laws, including Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934.
The timing and actual number of shares repurchased will depend on a variety of factors including regulatory restrictions on price, manner, timing, volume, corporate, and other regulatory requirements and other market conditions in an effort to minimize the impact of the purchases on the market for the Class A Ordinary Shares.
Founded in 2007, SunCar is transforming the customer journey for auto insurance and services in China, the world's largest passenger vehicle market. SunCar develops and operates cloud-based platforms that seamlessly connect drivers with a wide range of auto services and insurance coverage options through a nationwide network of sales partners.
SunCar grabbed 27 cents, or 174.6%, to 42 cents.
