ReWalk Robotics (Nasdaq:RWLK) announced today that its board of directors approved an extension to its current share repurchase program.
Yokneam Ilit, Israel-based ReWalk values its ordinary shares at NIS 0.25 ($0.072) apiece. This brings the program extension to an a aggregate amount of up to $5.8 million.
ReWalk’s ongoing $8 million repurchase program received approval from the board and an Israeli court. It ranges across a six-month period ending Jan. 20, 2023, according to a news release. Approval for the $5.8 million extension aims to facilitate purchases of up to $8 million over the life of the repurchase program. The extension remains subject to Israeli court approval. ReWalk filed a motion requesting permission to make purchases for six months following authorization.
“We believe our stock is significantly undervalued and this filing to extend our repurchase program reflects our confidence in the long-term potential of ReWalk,” said Jeff Dykan, chair of the board. “The board approved the program as part of its ongoing consideration of alternative methods to take advantage of the company’s strong cash position and based on the input of our shareholders. We believe the program represents a prudent use of the company’s capital and signals the board’s priority to maximize shareholder value.”
More details on the share repurchase program
ReWalk’s board unanimously approved the extension. It believes that the extension falls in the best interests of the company and its shareholders. The board expects no impact to ReWalk’s ability to execute growth plans.
Under the program, repurchases may be made from time to time through a variety of methods. These include open market transactions and privately negotiated transactions.
The program does not require ReWalk to acquire a specific number of shares. It may be suspended or discontinued at any time. ReWalk expects to fund share repurchases from available working capital.
“We are acting on multiple activities that are on track to support the future value of our stock,” said Larry Jasinski, CEO. “These include the current consideration of individual cases with the CMS MACs, the movement of court cases in Germany to provision of systems, the anticipated rebound in revenue as we are now emerging from the impact of past limits of training due to COVID, and with business development activity in our efforts to add additional product lines.”
Where ReWalk’s business currently stands
In October, ReWalk received a letter from the Nasdaq stock market indicating unsatisfied listing requirements. the market notified the company that it failed to maintain a minimum bid price of $1 per share. This fails to satisfy the requirement for continued listing on Nasdaq. Rewalk has 180 days (until April 10, 2023) to comply with the rule. Shares of ReWalk currently sit at 76¢ apiece.
Last month, it reported its third-quarter revenues came in at 50% of last year’s totals, with losses widening. However, the company aims to advance its technology through reimbursement wins in the U.S. and Germany.
ReWalk Robotics develops, manufactures, and markets wearable robotic exoskeletons. They help individuals with lower limb disabilities as a result of spinal cord injury or stroke.