Gorilla Technology Group Inc., a global solution provider in security intelligence, network intelligence, business intelligence and IoT technology, today announced that its board of directors has increased the authorised capacity under its previously announced share repurchase programme to $20 million, reinforcing the company’s belief that its current market valuation does not reflect its true strength, growth trajectory, and financial performance. Gorilla’s management and board are implementing a capital allocation strategy aimed at consistently and optimally returning value to shareholders, according to Jay Chandan, Chairman and CEO of Gorilla Technology.
“We believe the company’s current trading levels do not reflect the intrinsic value of Gorilla, which includes several recent operational milestones,” said Chandan.
In the past few months, Gorilla has executed a $1.4 billion AI data centre contract, launched a post-quantum cryptography Quantum-Safe Software-Defined Wide Area Network (SD-WAN) Initiative, and announced business wins in the Asia-Pacific region.
Chandan added, “This is all in addition to the world-class partnerships we’ve announced earlier this year. Our team will continue executing on our growth strategy as we identify and implement the most effective methods to deliver strong returns for our shareholders.”
The company currently has approximately $107 million in free cash and $120 million of restricted cash.
This cash balance reflects considerable recent spending on obligations under existing contracts, research and development, and increases in headcount.
Between cash on hand and scheduled customer payments on active projects, Gorilla believes it has sufficient working capital for its near-term project commitments and continues to work on securing additional capital sources for future project requirements that will be non-dilutive to its shareholders.
While currently in a blackout period, the company is prepared to utilise the full available capacity of the share buyback programme upon the release of the third quarter financials and related business updates.
This action is contingent upon its share price not reflecting its intrinsic value and long-term potential by that time.
In parallel to this increase in its share repurchase programme, the company will also be submitting new trading data and related evidence regarding unusual trading patterns observed in its stock, including what it believes to be aggressive shorting and possible naked short activity, to the U.S. Securities and Exchange Commission (SEC), upon the reopening of the U.S. government.
Gorilla disclosed its intention to continue engaging through all appropriate regulatory channels to ensure transparency and fairness for its investors.
