iCandy Interactive (ASX: ICI) is about to launch an on-market share buy-back to take advantage of what it says is its undervalued share price.
The company will buy-back up to 36 million shares, with the process to begin on 30 September and continue for 12 months.
“The board considers that the company’s share price does not accurately reflect the underlying value of the company’s assets and growth prospects amidst a global gaming market that has experienced enormous expansion during recent times,” iCandy stated.
“The share buy-back represents an opportunity to add value to the remaining shares on issue.”
iCandy noted the timing of the buy-back and final number of shares purchased will be subject to market conditions.
The company’s share price closed yesterday at $0.073. It has steadily fallen since about $0.21 in November last year.
iCandy’s core business is in developing and publishing mobile games and digital entertainment for global audiences.
In late July, the company revealed its newly launched Claw Stars game had brought in almost $300,000 within its first 14 days on the market.
This compares to the company’s previous release Masketeers: Idle Has Fallen which generated $265,000 in revenue within the first two weeks. This rose to $668,000 within the game’s first 30 days of launching.
In the half year ending June 2021, iCandy recorded $925,785 in revenue and had total assets worth almost $12 million.
The company noted this figure didn’t reflect the successful Claw Stars launch and revenue.
Last year, the Australian Financial Review ranked iCandy 25 on its Fast 100 list. The list recognises the top 100 fastest growing companies of Australia.
iCandy has more than 300 game titles in more than 10 languages.
The company’s game Rocky Rampage: Wreck ‘em Up won an award last year. It was named the Best Casual Game on Google Play’s Best of 2020s.