EHang Holdings Limited (NASDAQ:EH) saw its shares rise in premarket trading on Friday following the announcement of a new share repurchase program.
The company's Board of Directors has approved the repurchase of up to $30 million worth of American Depositary Shares (ADSs) or ordinary shares over the next 12 months.
Huazhi Hu, Founder, Chairman, and CEO of EHang, highlighted that the repurchase program reflects the company's belief in its future potential and its commitment to delivering value to shareholders.
He emphasized EHang's focus on advancing its leadership in providing safe, pilotless, and sustainable electric Vertical Take-Off and Landing (eVTOL) solutions within the rapidly growing Urban Air Mobility (UAM) sector.
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"Looking ahead, we remain focused on advancing our leadership in providing safe, pilotless, and sustainable eVTOL solutions in the Urban Air Mobility sector, while maintaining a disciplined approach to capital allocation to ensure sustainable growth and profitability," Hu said.
In a related development, EHang recently unveiled a new UAM Hub at Luogang Central Park in Hefei, Anhui Province, China.
This marks the second vertiport in the region, following the opening of the UAM Operations Center earlier this year. The Hub is designed to support the operation of EHang's EH216-S pilotless passenger drones, which play a central role in the company's expanding efforts in the eVTOL market. The new facility, named "Ascend," features a distinctive upward spiral design, symbolizing the growth of the low-altitude economy in the region.
This infrastructure milestone strengthens EHang's partnership with Hefei City, helping to advance the commercial use of eVTOL aircraft in Eastern China.
Price Action: EH shares are trading higher by 1.96% to $13.55 premarket at last check Friday.
Image: Shutterstock/ bangoland
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