Pineapple Financial Inc. (NYSE:PAPL) shares surged 57.40% to $0.94 in after-hours trading Wednesday after the company’s Board of Directors approved an expansion of its share repurchase program, raising the authorization from $3 million to up to $15 million.
Buyback Structure
The expanded program includes an initial $3 million tranche, which the Toronto-based fintech said it will begin executing immediately, along with an additional $12 million that remains subject to further board approval, solvency requirements and capital allocation priorities, Newsfile reported.
What It Means For Investors
Repurchase programs reduce the number of shares outstanding and can increase earnings per share, and they are generally seen as a positive signal by the market.
With short interest at just 1.44%, the after-hours surge appears fundamentals-driven rather than a short squeeze.
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