Rezolve AI Ltd (NASDAQ:RZLV) shares rose 7.1% in premarket trading on Friday after the company announced plans to seek shareholder approval for a proposed share repurchase programme worth up to $300 million.
The initiative is intended to allow the company to buy back a substantial amount of its outstanding stock, reflecting management’s confidence in the business and its future growth prospects.
Shareholders to Vote at Upcoming AGM
The proposal will be presented to shareholders at Rezolve AI’s annual general meeting on June 30, 2026.
The board is seeking approval for a capital reduction as well as authorisation for an agreement with BTIG that would facilitate the repurchase of up to $300 million of the company’s ordinary shares.
According to the proposal, BTIG would acquire shares in the open market within predetermined pricing limits before selling them back to Rezolve AI.
The company said it plans to commence repurchases once the required court approval for the capital reduction has been obtained, using existing cash resources.
Board Says Market Valuation Does Not Reflect Business Potential
Rezolve AI stated that the proposed buyback programme is based on the board’s belief that the company’s current share price does not accurately reflect the strength of its business model or its long-term growth opportunities.
Management noted that existing voting arrangements suggest the proposal is likely to secure shareholder approval.
Court approval is currently expected before the end of August 2026.
Financing Options Under Review
While the company intends to fund initial repurchases using cash already on hand, it is also exploring alternative financing options to support the programme over the longer term.
Rezolve AI said it is assessing potential non-dilutive funding sources that would allow it to continue returning capital to shareholders while preserving flexibility for strategic acquisitions and ongoing investment in growth initiatives.
The company cautioned, however, that there is no guarantee any additional financing arrangements will be completed.
Programme Provides Flexibility
The proposed capital reduction must receive approval under the UK Companies Act 2006 before the repurchase programme can proceed.
Rezolve AI also emphasised that the buyback would not require the company to purchase a specific number of shares.
Management would retain the flexibility to suspend, amend or terminate the programme at any time depending on market conditions and corporate priorities.
CEO Highlights Confidence in Future Prospects
Commenting on the proposal, Chairman and Chief Executive Officer Daniel M. Wagner said the board believes the company’s current valuation significantly understates its underlying value.
According to Wagner, the proposed repurchase programme represents a clear demonstration of confidence in Rezolve AI’s future performance and long-term growth potential.
The announcement was welcomed by investors, helping push the stock higher ahead of the market open as traders responded positively to the prospect of a sizeable share repurchase programme.