US developer Huuuge Games has announced a large scale share buyback program following a strategic options review.
The review, which was led by a special committee of the board with assistance from external advisors, involved a deep evaluation of the company, its market position, and various options available to the company moving forward, with the aim of maximising value for shareholders.
“The conclusion of our Strategic Options Review marks the end of a period of self-reflection within Huuuge and the beginning of a new chapter dedicated to creativity, innovation and agility,” said Huuuge founder and co-CEO Anton Gauffn. “We are confident in the long term success of Huuuge. Our profitability allows us to invest in our future and also to think strategically as to how to offer continued value for our shareholders.”
Following the review, the board has concluded that given the trading price of Huuuge shares and the company’s significant cash reserves, this is an opportune time to maximise stockholder’s value by giving them the opportunity to sell their shares back to the company.
To this end, Huuuge has announced plans to allocate up to $150 million to a share buyback program, while retaining cash reserves for operational needs, publishing, and M&A opportunities.
How will the program work?
Details of the program will be released during Q1 2023, and will be conducted via a time-limited invitation to sell, with intentions to end the program before the 2022 closed period commences. However, this plan is subject to final determinations by the board regarding pricing and timing.
“Under current market conditions we are proud to be in a position where we can offer significant liquidity of up to $150M to our shareholders and further drive per share value by buying back stock. We will communicate the full details of our plan soon,” said Gauffin.
“While there are still a number of challenging factors affecting the global gaming industry, I am confident that by returning to the fundamentals of what made us successful and refocusing on making fun, widely appealing games, we will maximise our ability to deliver an outlook of growth and success”.
Last month, Huuuge Games acquired publishing rights for studios Square Triangle and Frieddegames.