-
The company will use its existing cash balance to buy back shares over the next 12 months
-
It also quashes allegations of manipulating operating or financial data on the Yalla app
Social media platform Yalla’s parent company Yalla Group Limited announced on Friday, May 21, that it would buy back shares worth $150 million from the market over the next 12 months using its existing cash balance.
The company, in a statement, said its board of directors had authorized this share repurchase program after considering its “strong cash position, and in order to protect shareholders’ value and demonstrate the company’s confidence in its continued growth and long-term prospects.”
It said in the statement: “Certain recent allegations by short sellers against Yalla contain distorted, misleading, and unsubstantiated claims regarding the company. These allegations illustrated these short sellers’ lack of understanding of the company’s business model and the feelings and sentiments within the company’s user community.”
The company added that it has “not placed any robots into any of its chatrooms or otherwise manipulated its MAU or other operating or financial data.”
It also said it has “a solid business model and monetization model which have been delivering strong revenue and profit, leading to solid cash balance.”
The company explained that the proposed buyback may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations.
It also said the Yalla Group’s board of directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size.
Meanwhile, speaking about its policy on the Yalla app, the company said it “strives to maintain users’ equal status on its platform, thereby encouraging all users to freely communicate and interact with each other.”
