Interim management provides first update and share buyback plan.
Shares in MMX (AIM: MMX), also known as Minds + Machines, were up 24% in trading today, closing at 4.705 pence.
The company announced a buyback program commencing today in which it will buy up to $3 million in shares through the end of the year.
Shares had fallen by about a third after the company announced an accounting investigation. It later determined that the company had improperly booked revenue that should have been considered more like a deposit.
Resulting management changes resulted in 46 million options and RSUs being forfeited, reducing MMX’s fully diluted shares by approximately 4.7%.
Operating cash flow for 2020 is expected to exceed $4.0 million, which would result in available cash at December 31, 2020 of more than $8.0 million prior to buybacks.
Interim management for the company said it will take steps to reduce costs in 2021.