Why Linear Generator Solutions Provider Hyliion Shares Are Surging Today

Shares of linear generator solutions provider Hyliion Holdings Corp HYLN are shooting higher after it announced a share buyback program.

The company's Board of Directors has authorized a stock repurchase program of up to $20 million of the company's issued and outstanding common stock, par value $0.001 per share.

Hyliion recently announced that it is winding down its powertrain operations while concentrating future efforts on the development of the KARNO generator.

The company reported $324 million of cash and investments at the end of September 2023 and projected a year-end balance of approximately $285 million.

Hyliion expects to begin initial paid deployments of the KARNO generator in late 2024 and projects cash spending of approximately $40 million for the year.

"The initiation of a stock repurchase program underscores our confidence in the potential of KARNO's innovative generator technology and in our ability to complete development and delivery of initial units next year," said Founder and CEO Thomas Healy.

The company has entered into a non-binding letter of intent with high-pressure gas transport leasing company GTL Leasing LLC (GTL) for the deployment of KARNO generators. 

GTL is expected to bring the KARNO technology to California as a mobile EV charging solution for its customers where adequate power is not currently available.

Price Action: HYLN shares are trading higher by 4.15% at $0.73 on the last check Wednesday.

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