Rezolve Ai PLC (NASDAQ:RZLV) shares are in focus Friday after the company announced its Board of Directors will seek shareholder approval at its June 30 annual general meeting for a capital reduction and a $300 million share repurchase program.
Rezolve shares are powering higher. Why is RZLV stock surging?
The Buyback
Rezolve announced it will seek authority to repurchase up to $300 million of ordinary shares through an agreement with BTIG, a global financial services firm. Under the agreement, Rezolve will repurchase from BTIG ordinary shares that BTIG acquires in the market within agreed pricing parameters. The program requires a capital reduction — a UK corporate structure move subject to standard Court approval under the UK Companies Act 2006 — which the company expects to obtain by the end of August. The Board expects the proposal to be approved at the June 30 annual general meeting based on existing voting arrangements.
The company intends to commence repurchases as soon as possible following Court approval, using existing cash reserves. To support the program over time, Rezolve Ai said it is evaluating non-dilutive financing alternatives and strategic capital initiatives, though it cautioned no assurance can be given that any such financing will be completed.
