Genius Group Limited (AMEX:GNS) shares traded higher on Wednesday after the company revealed a share repurchase initiative that authorizes the company to buy back a significant portion of its stock.
What Happened: In a recent extraordinary general meeting held on April 7, 97.5% of the shareholders voted in favor of the proposed buyback.
The company’s board has now authorized management to carry out the repurchase, although the actual timing will be at the discretion of the executive team.
The plan allows the company to buy back up to 20% of its outstanding shares, the maximum allowed under Singaporean corporate law for an EGM-approved action.
The repurchase will comply with all relevant U.S. federal securities regulations and NYSE listing rules.
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The firm also addressed a separate issue affecting its employee equity program.
In mid-March 2025, the U.S. District Court for the Southern District of New York issued a preliminary injunction barring the company from issuing new shares, disrupting its longstanding stock-based compensation scheme.
Genius Group said it has now opted to offer equivalent cash payouts in place of the stock awards that couldn’t be issued.
Additionally, the board has granted affected employees the option to purchase company shares independently through open market transactions, subject to existing securities regulations.
Why It Matters: Chief Executive Roger Hamilton addressed the situation: “Whilst a US court has blocked us from selling our shares, there is no block on buying our shares.”
He highlighted the shareholder vote as a signal of strong investor confidence in the company’s defensive strategy.
Hamilton further criticized the injunction’s impact, stating that it has impaired the company’s ability to secure capital, compensate staff, and pursue growth opportunities, including cryptocurrency investments.
“We have continued and will continue to bring to the court’s attention through all avenues open to us the fraud being perpetrated on both the court and the company that has led to the current block on our ability to raise financing, pay employees, fund our growth or buy Bitcoin,” Hamilton added.
Price Action: GNS shares are trading higher by over 9% to 25 cents at last check Wednesday.
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